scholarly journals The January barometer in emerging markets: new evidence from the Gulf Cooperation Council stock exchanges

2019 ◽  
Vol 16 (4) ◽  
pp. 61-71
Author(s):  
Costas Siriopoulos ◽  
Layal Youssef
Keyword(s):  
Emerging Markets ◽  
Stock Markets ◽  
Predictive Power ◽  
Gulf Cooperation Council ◽  
Least Square ◽  
January Effect ◽  
Stock Exchanges ◽  
Market Anomalies ◽  
Gulf Countries ◽  
International Investors

International investors’ interest in the capital markets in the region of Gulf countries has dramatically increased in last two decades. Thus, it would be motivating to investigate their characteristics, where the January anomaly is a major one. This paper studies the veracity of the January effect rule in the Gulf Cooperation Council (GCC) stock markets and examines the predictive power of January returns. Seven GCC stock markets are tested – the market indices in Bahrain, Abu Dhabi, Dubai, Kuwait, Oman, Qatar, and Saudi Arabia – from January 1, 2001 until December 31, 2018, a timeframe which has rarely been analyzed. Ordinary least square (OLS)-based dummy variable regression equation was used as the conventional econometric procedure in the works of financial calendar anomalies in stock markets. Some evidence is reported for the markets of Dubai and Kuwait. The paper also provides an additional explanation for the performance of stock market of Kuwait. The findings are opposite to the well documented evidence that emerging markets are less efficient and hence it is likely that several market anomalies are further pronounced. The results suggest that the predictive power of the January anomaly can be considered as a temporary anomaly in the GCC markets, since it is concentrated in only a couple of GCC markets and does not persist in time.

The performance of Bursa Malaysia and its causality effect with South Korea, Taiwan and Japan stock exchanges : 2000 – 2004

2006 ◽  
Vol 3 (2) ◽  
pp. 41
Author(s):  
Omar Samat ◽  
Zuraidah Ismail ◽  
Jaslin Md Dahlan
Keyword(s):  
South Korea ◽  
Portfolio Management ◽  
Stock Markets ◽  
Stock Exchange ◽  
Stock Exchanges ◽  
International Investors ◽  
Year 2000

This study examines the effect of returns from South Korea, Taiwan and Japan Stock Exchanges on the Bursa Malaysia in the year 2000 to 2004. The return from an individual stock exchange is no longer exclusive but with effect of globalization, it is also influenced by activities happening in other countries. The sources ofco-movements between stock markets are of great importance both for international investors and academics. A better knowledge of the underlying factors may improve portfolio management and help to assess the degree offinancial integration and efficiency.

An Inquiry into the Persistence of Holiday Effect on Stock Markets in India: Insights and Perspectives on a Seasonal Anomaly

2021 ◽  
pp. 231971452110168
Author(s):  
Meher Shiva Tadepalli ◽  
Ravi Kumar Jain ◽  
Bhimaraya Metri
Keyword(s):  
Stock Market ◽  
Stock Markets ◽  
Stock Exchange ◽  
Abnormal Returns ◽  
Stock Exchanges ◽  
Indian Market ◽  
Pricing Models ◽  
Market Anomalies ◽  
Holiday Effect ◽  
Stock Market Efficiency

Asset pricing is a key area of literature in analysing and evaluating the stock market efficiency. Though various pricing models made efforts to explain the behaviour of the stocks, the existence of seasonal anomalies in the stock markets creates an opportunity for the investors to generate abnormal returns. The present article emphasizes one of such market anomalies namely, the holiday effect using indices belonging to Indian stock exchanges. Thorough research is performed by including all the prime market-capital and sectoral indices of the National Stock Exchange and the Bombay Stock Exchange. The ARIMAX methodology is adopted to observe the anomaly by considering exogenous variables representing the trading days before the exchange-mandated holidays. Further, the strength of the anomaly is analysed with the incorporation of various stock market reforms and observed to be significantly persistent among most of the Indian market indices (including both the sectoral and the market-capital based indices).

scholarly journals Capital Markets and Foreign Ownership Restrictions: An Empirical Analysis of Emerging Stock Markets

2000 ◽  
Vol 39 (4II) ◽  
pp. 933-950
Author(s):  
Javed Anwar ◽  
Tariq Javed
Keyword(s):  
Emerging Markets ◽  
Capital Markets ◽  
Stock Markets ◽  
Financial Assets ◽  
Global Trends ◽  
Capital Movements ◽  
Emerging Stock Markets ◽  
Risk Characteristics ◽  
Portfolio Managers ◽  
International Investors

In the 1990s, the hot issue in international finance was the growing interest of portfolio managers in the emerging stock markets. The interest in the emerging markets gained rapid attention, which is evident from the global trends, towards the opening up of economies and financial markets, free capital flow and the privatisation of financial institutions. Earlier the emerging markets were isolated due to several factors that had posed serious problems for international investors. These markets lacked the depth, regulatory framework, and structural safeguards that had characterised the equity markets in the developed world. Capital markets are called integrated, if assets with perfectly correlated rates of returns have the same price regardless of the location in which they are traded. Alternatively, capital market are called segmented, if financial assets traded in different markets “with identical risk characteristics” have different returns due to different investment restrictions.1 Segmentation may be due to individuals’ attitudes, government restrictions over capital movements or irrationality.

scholarly journals International capital flows, stock markets, and uneven development: the case of Sub-Saharan Africa and the Sustainable Stock Exchanges Initiative (SSEI)

2018 ◽  
Vol 62 (2) ◽  
pp. 92-107 ◽  
Author(s):  
Britta Klagge ◽  
Hans-Martin Zademach
Keyword(s):  
Sustainable Development ◽  
Capital Flows ◽  
Stock Markets ◽  
International Investment ◽  
Sub Saharan Africa ◽  
Stock Exchanges ◽  
Exploratory Research ◽  
Economic Development And Growth ◽  
Sub Saharan ◽  
International Investors

Abstract While for a long time only regarded as subordinate factors, it is meanwhile accepted that financial systems and capital flows play a key role for economic development and growth. Against this background many countries of the Global South founded new, or liberalised existing, stock exchanges, albeit with different results. Whereas in various Asian countries these markets have attracted sizable amounts of investment capital for domestic companies, this is not the case for most stock exchanges in Africa and especially Sub-Saharan Africa. Although there is an increasing number of Sub-Saharan African stock exchanges, the majority is institutionally weak, small, illiquid and thus unattractive to most international investors, resulting in low portfolio investment inflows to Sub-Saharan Africa. Nonetheless, Africa is becoming increasingly portrayed as continent of opportunities with immense growth prospects which led to a new and growing appetite for investment in Africa in general and Sub-Saharan Africa in particular. In this situation the new UN-supported Sustainable Stock Exchanges Initiative (SSEI) comes into play which aims at transforming stock markets into instruments for supporting sustainable development and green growth. Based on conceptual considerations surrounding the development-through-stock-exchanges argument, this exploratory research addresses the actors involved in this initiative and takes their rationales under closer scrutiny. We argue that the initiative not only serves as a tool for sustainable development, but also as a promoter and facilitator of new international investment opportunities, specifically for international and institutional investors in their drive to enlarge and diversify their portfolios – resulting in various challenges for Sub-Saharan stock exchanges and their local stakeholders.

scholarly journals Adaptive Market Hypothesis and Time-varying Contrarian Effect: Evidence From Emerging Stock Markets of South Asia

SAGE Open ◽  
2022 ◽  
Vol 12 (1) ◽  
pp. 215824402110684
Author(s):  
Ali Fayyaz Munir ◽  
Mohd Edil Abd. Sukor ◽  
Shahrin Saaid Shaharuddin
Keyword(s):  
Stock Market ◽  
Emerging Markets ◽  
South Asian ◽  
Stock Markets ◽  
Time Varying ◽  
Market Conditions ◽  
Market Anomalies ◽  
Developed Markets ◽  
Emerging Stock Markets ◽  
Stock Market Anomalies

This study contributes to the growing debate on the relation between varying stock market conditions and the profitability of stock market anomalies. We investigate the effect of changed market conditions on time-varying contrarian profitability in order to examine the presence of the Adaptive Market Hypothesis (AMH) in South Asian emerging stock markets. The empirical findings reveal that a strong contrarian effect holds in all the emerging markets. We also find the stock return opportunities vary over time based on contrarian portfolios. We show that contrarian returns strengthen during the down state of market, higher volatility and crises periods, particularly during the Asian financial crisis. Interestingly, the market state instead of market volatility is the primary predictor of contrarian payoffs, which contradicts the findings of developed markets. We argue that the linkage arises from structural and psychological differences in emerging markets that produce unique intuitions regarding stock market anomalies returns. The overall findings on the time-varying contrarian returns in this study provide partial support to AMH. Another significant outcome of this study implies that investors in South Asian emerging markets, like investors in the developed markets, could not adapt to evolving market conditions. Therefore, contrarian profits often exist, and persistent weak-form market inefficiencies prevail in these markets.

scholarly journals The Weekend Effect in African Stock Markets

2019 ◽  
pp. 24-28
Author(s):  
Brinwa Kra ◽  
Xing Lu ◽  
Haiyan Yin
Keyword(s):  
Financial Crisis ◽  
Stock Returns ◽  
Stock Markets ◽  
Weekend Effect ◽  
Stock Index ◽  
Stock Exchanges ◽  
Market Anomalies ◽  
Time Period ◽  
Negative Effect ◽  
Stock Market Anomalies

This study investigates daily stock market anomalies in the African stock markets, using two most representative stock index ETFs, each over at least eleven-year time period spanning from pre-financial crisis era to ten years into the financial crisis. This research attempts to test the presence of the weekend effect on stock returns in the African stock exchanges during the financial crisis. The results indicate a significant negative effect on Mondays. Our results shed some light on the degree of market efficiency in one of the major emerging capital markets in the world.

Do the calendar anomalies still exist? Evidence from Indian currency market

2016 ◽  
Vol 42 (2) ◽  
pp. 136-150 ◽  
Author(s):  
Satish Kumar ◽  
Rajesh Pathak
Keyword(s):  
Least Square ◽  
January Effect ◽  
Currency Markets ◽  
Content Type ◽  
Currency Market ◽  
Before And After ◽  
Calendar Anomalies ◽  
Ordinary Least Square Regression ◽  
The 2008 Financial Crisis ◽  
Using Data

Purpose – The purpose of this paper is to examine the presence of the day-of-the-week (DOW) and January effect in the Indian currency market for selected currency pairs; USD-(Indian rupee) INR, EUR-INR, GBP-INR and JPY-INR, from January, 1999 to December, 2014. Design/methodology/approach – Ordinary least square regression analysis is used to examine the presence of DOW and January effect to test the efficiency of the Indian currency market. The sample period is later divided into two sub-periods, that is, pre- and post-2008 to capture the behavior of returns before and after the 2008 financial crisis. Further, the authors also use the non-parametric technique, the Kruskal-Wallis test, to provide robustness check for the results. Findings – The results indicate that the returns during Monday to Wednesday are positive and higher than the returns on Thursday and Friday which show negative returns. The returns during January are found to be higher than the returns during rest of the year. Further, all currencies exhibit significant DOW and January effects in pre-crisis period, however, post-crisis; these effects disappear for all currencies indicating that the markets have become more efficient in the later time. The findings can be further attributed to the increased intervention in the forex markets by the Reserve Bank of India after the crisis. Practical implications – The results have important implications for both traders and investors. The findings suggest that the investors might not be able to earn excess profits by timing their positions in some particular currencies taking the advantage of DOW or January effect which in turn indicates that the currency markets have become more efficient with time. The results are in conformity with those reported for the developed markets. The results might be appealing to the practitioners as well in a way that they can consider the state of financial market for financial decision making. Originality/value – The authors provide the first study to examine the calendar anomalies (DOW and January effect) across a range of emerging currencies using 16 years of data from January, 1999 to December, 2014. To the best of the authors’ knowledge, no study has yet examined these calendar anomalies in the currency markets using data which covers two important periods, pre-2008 and post-2008.

Conventional Legal Regulation of Value-Added Taxation by the Member States of the Gulf Cooperation Counci

2021 ◽  
pp. 232-238
Author(s):  
Dmitry G. Bachurin ◽  
Keyword(s):  
Persian Gulf ◽  
Value Added ◽  
Legal Framework ◽  
Legal Regulation ◽  
Gulf Cooperation Council ◽  
Legal Aspects ◽  
Gulf Countries ◽  
The Common ◽  
National Tax ◽  
The Persian Gulf

The article discusses the legal aspects of supranational legal regulation of value added taxation in the Persian Gulf countries. The novelty of the research lies in the comparative aspect of the legal study of supranational law on the value-added tax in the Gulf countries, which allows formulating fundamentally new characteristics and interpretations that extend the theoretical and legal views on the legal mechanism of VAT, and analyzing the key provisions of the legal regulation of VAT of the states that are parties to the Common VAT Agreement. The issues of the Agreement for the countries of the Gulf Cooperation Council, as well as acts of national legislation on this tax, were studied. The analysis of the provisions of the Agreement allows concluding that the tax instrument this Agreement regulates can be classified as a type of neutral legal regulation of value-added taxation. Its peculiarity is that the country for one reason or another introduces VAT into the national tax system with minimal tax rates and continues to keep it at a low level that does not have a restraining effect on the development of its own industry. This is the reference point for the Common VAT Agreement for the countries of the Gulf Cooperation Council. The research shows that the supranational legislation of the Persian Gulf countries covers the most complex and fundamentally significant issues of legal regulation of value-added taxation, which developed taking into account the accumulated world experience in the administration of this tax. Conclusions have been obtained that the main direction of the adopted supranational legislation is the creation of a unified legal framework for the development of a coordinated legal regulation of VAT in each of the six Arab states of the Persian Gulf. The definitions of concepts that are crucial for VAT regulation are given, among which the following can be distinguished: reverse VAT accrual, input tax, deductible tax, net tax, mandatory registration threshold, voluntary registration threshold, and tax group. In the final part of the work, it is concluded that the second regional system of legal regulation of value-added taxation after the European one is being created, which begins its development on the basis of supranational legislation. Within its framework, the states that are parties to the Agreement shall organize administrative cooperation in the following areas: (1) exchange of information necessary for determining tax accuracy; (2) coordination of synchronized audit procedures and participation in audits; (3) assistance in tax collection and adoption of necessary procedures related to VAT collection.

The effectiveness of e-entrepreneurship training programs in the emerging markets (GCC)

2022 ◽  
Vol 12 (1) ◽  
pp. 0-0
Keyword(s):  
Factor Analysis ◽  
Emerging Markets ◽  
Statistical Data ◽  
Training Programs ◽  
Great Influence ◽  
Educational Institutions ◽  
Actual Process ◽  
Validity And Reliability ◽  
Entrepreneurship Training ◽  
Gulf Countries

The study aimed to examine the effectiveness of e-entrepreneurship training programs (EETP) content (curriculum), EETP period, EETP trainers (instructors – individual mentor’s role) and EETP candidates’ input (involvement and contribution)) in the higher educational institutions (HEI) in the emerging markets (EM) particularly in the Gulf Countries Council (GCC). The survey instrument was pre-tested to establish its validity and reliability and the quantitative statistical data that emerged from the administration of the survey were analyzed using t-tests, factor analysis, and analysis of variance and correlations (ANOVA). the study concluded that the curriculum defines the experiences presented to the learner, hence the great influence on curriculum effectiveness. Instructors also are the actual implementers of the curriculum. Additionally, they guide students in the actual process. Their role reflects their influence on the effectiveness of EETP.

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