Tabash, M.I.Sheikh, U.A.Shawkat, H.Hoon, K.S.2025-12-182025-12-182026Research in International Business and Finance, 2026; 81(103142):1-330275-5319https://hdl.handle.net/11541.2/44787This study quantifies the cumulative abnormal returns (CARs) and abnormal returns (ARs) of the global Sharia and non-Sharia-compliant sectors surrounding the Silicon Valley Bank (SVB) collapse. We integrate daily global financial stress indices (FSI), geopolitical risk (GPR), and the oil price volatility index (OVZ) into an OLS regression to control for global uncertainties. We estimate the SVB implosion's moderating effects on the global Islamic and non-Islamic crosssectoral conditional connectedness between the Sharia and non-Sharia-compliant returns. The findings show that non-Sharia-compliant sectors-energy, industrials, and materials-incurred smaller cumulative abnormal losses than their Sharia-compliant counterparts. However, the global non-Sharia-compliant financial sector was more negatively affected by the SVB implosion. The SVB implosion positively moderates the dynamic conditional connectedness between the Islamic and non-Islamic sectors. However, cross-market correlations diminished for specific Islamic-non-Islamic sectoral stock pairs during the event date and the subsequent adjustment phase, indicating enhanced opportunities for risk mitigation and portfolio diversification. Using the DCC-GARCH-t copula method to formulate a hedge ratio strategy reveals that, during prolonged volatility in most non-Sharia-compliant industries, the most cost-effective risk mitigation is a short position in the Sharia-compliant Energy sector.enCopyright 2025 Elseviersilicon valley bank implosion collapseevent study methodologyhedge ratios and hedging effectivenessglobal uncertaintiesdcc-garch-t copulaJournal article10.1016/j.ribaf.2025.103142001595173000001