Download or read book Stock Market Bubbles with Reference to GCC Countries written by Karim Saadallah Haroun and published by . This book was released on 2007 with total page 156 pages. Available in PDF, EPUB and Kindle. Book excerpt: In 2006 GCC stock markets experienced huge corrections which wiped out hundreds of billions of dollars worth of market capitalization. The extent of the decline was even more catastrophic in the long run for both Saudi Arabia and Dubai resu lting in a significant loss of income to many citizens in the region. In light o f the crash, the aim of this project is to provide a better understanding of mar ket bubbles and to address probable causes behind the GCC crash. After a general Introduction, Chapter 2 describes theoretical models behind market bubbles. Cha pter 3 highlights the historical occurrences of stock market booms and crashes c oncentrating on the hypotheses offered to explain the formation of these bubbles . Chapter 4 describes the boom and the recent crash of the stock markets in the GC C countries; three probable causes behind the crash are examined. The impact tha t IPO had on Saudi market performance is measured. We find that IPO had a downbe at effect on market performance, but that it did not trigger the crash. The role of fundamentals in the market was assessed. We find that prices were dictated b y noise rather than fundamentals and that expected growth was not high enough in order to justify valuations. Lastly we find that the activity of small or priva te investors has increased considerably in the market since 2003 and that during the "speculative attack" period small investors played an important role in dep reciating prices and causing "panic selling."

Download or read book Stock Market Developments in the Countries of the Gulf Cooperation Council written by Ahsan Mansur and published by Palgrave MacMillan. This book was released on 2008-10-31 with total page 242 pages. Available in PDF, EPUB and Kindle. Book excerpt: "This book provides an analysis of the structural strengths and weaknesses of the Gulf stock markets and the appropriateness of policies implemented. It examines the effect of the 2006 correction on financial stability and economic growth and explains the differences in performance of some regional markets. This research integrates for the first time under a homogenous methodology the systematic analysis of all stock markets in the Gulf, identifies common trends and causes for differential behaviour and constitutes a key contribution toward the understanding of the functioning of the Gulf stock exchanges by domestic and foreign investors."--BOOK JACKET.

Download or read book Stock Markets in GCC Countries Risk and Volatility Analysis written by Ibrahim Onour and published by LAP Lambert Academic Publishing. This book was released on 2012 with total page 144 pages. Available in PDF, EPUB and Kindle. Book excerpt: A number of events that have been occurring in the past few years highlight the importance of capital markets in Gulf Cooperation Council (GCC) countries. As GCC capital markets became increasingly open to foreign investors in the past few years, they become more vulnerable to shocks in international markets, and thus more volatile. Also, the increasing cointegration among GCC markets increased the spillover effect of regional shocks, which in turn contributed towards increasing volatility in these markets. It is also to be noted that due to lack of sound regulatory policy in some of these markets, hyping, dumping and rumours become the main driving forces behind the frequent changes in stock prices. In addition, as GCC economies depend largely on crude oil revenue, volatility in oil prices in the past few years fuelled extreme stock price changes. The book combines research papers related to these type of issues.

Download or read book Global and Regional Spillovers to GCC Equity Markets written by Tahsin Saadi Sedik and published by International Monetary Fund. This book was released on 2011-06-01 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper analyzes the impact of global and regional spillovers to GCC equity markets. GCC equity markets were impacted by spillovers from U.S. equity markets despite varying degrees of foreign participation. Spillovers from regional equity markets were also important but the magnitude of the effects were on average smaller than that from mature markets. The results also illustrated episodes of contagion in particular during the recent global financial crisis. The findings suggest that given the degree of openness, and open capital accounts the financial channel is an important source through which volatility is transmitted. In this regard, GCC equity markets are not immune from global and regional financial shocks. These findings refute the notion of decoupling between the GCC equity and global equity markets.

Download or read book The Composition and Characteristics of Stockholders in GCC Markets and Their Response to the Released Information written by Turki Alshammari and published by . This book was released on 2020* with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Impact of the Global Financial Crisis on the Gulf Cooperation Council Countries and Challenges Ahead written by Ms.May Y Khamis and published by International Monetary Fund. This book was released on 2010-07-21 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: Departmental papers are usually focused on a specific economic topic, country, or region. They are prepared in a timely way to support the outreach needs of the IMF’s area and functional departments.

Download or read book Accounting Finance and Taxation in the Gulf Countries written by W. Abdallah and published by Springer. This book was released on 2016-04-30 with total page 271 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book focuses on how multinational companies can plan and manage their international business in the Gulf countries. Important issues of accounting, auditing, finance, taxation, marketing, and managerial issues are covered in each of the selected Gulf countries.

Download or read book Money in the Middle East and North Africa written by David Cobham and published by Routledge. This book was released on 2010-12-07 with total page 295 pages. Available in PDF, EPUB and Kindle. Book excerpt: Building on the editors’ earlier book, Monetary Policy and Central Banking in the Middle East and North Africa, this book emphasises monetary policy strategies and frameworks. It fills an important gap providing multi-country and single-country studies on monetary policy in post-civil war Lebanon, Egypt, Jordan, the Palestinian Territory and Turkey.

Download or read book The Influence of Oil and Other Macroeconomic Variables on GCC Stock Markets written by Loucine Khatchig Basmajian and published by . This book was released on 2013 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book US Economic Policy Uncertainty Spillover on the Stock Markets of the GCC Countries written by Khandokar Istiak and published by . This book was released on 2019 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt: Purpose: We investigate the nature and degree of US economic policy uncertainty spillover on the stock markets of a group of nonconventional economies like the GCC countries, where risk-sharing based financial system is prominent and foreign investment, risk-free interest, derivatives, etc. are not as widespread as in Western economies. Design/methodology/approach: We employ the monthly data of 1992-2018, linear and nonlinear structural VAR models, and an impulse response-based test to explore the nature and degree of US economic policy uncertainty spillover on the stock markets of the GCC countries.Findings: We find that an unexpected increase in the US economic policy uncertainty significantly decreases the stock market index of all the GCC countries. We also get this relationship symmetric meaning that the GCC stock market indices decrease and increase by the same amount when the US economic policy uncertainty increases and decreases, respectively. Originality/value: This research investigates the characteristics of economic policy uncertainty spillover from the biggest economy of the world to the stock markets of the GCC region, which is new to the literature. Our results provide the first evidence that a risk-sharing based financial system does not necessarily protect the stock market from US uncertainty shock. However, the abundance of local investors, risk-sharing investment activities, the absence of derivatives, etc. may be responsible for the symmetric behavior of a stock market.

Download or read book Money Markets and Monarchies written by Adam Hanieh and published by Cambridge University Press. This book was released on 2018-09-13 with total page 315 pages. Available in PDF, EPUB and Kindle. Book excerpt: An original and empirically grounded analysis of the Gulf monarchies and their role in shaping the political economy of the Middle East.

Download or read book The Impact of Business and Political News on the GCC Stock Markets written by Alanoud Al-Maadid and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates the impact of business and political news on stock market returns in the Gulf Cooperation Council (GCC) countries. For this purpose, it employs a Markov switching model including a separate index for each of the two categories of news considered. The results indicate the importance of news as drivers of GCC stock returns, with business news playing a more substantial role; further, news released in the largest financial markets in the regions are found to have significant cross-border effects.

Download or read book Stock Markets Dynamics in Oil Dependent Economies written by Wafaa Sbeiti and published by . This book was released on 2013 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates the relationship between stock prices and main macroeconomic variables (i.e. oil prices, short-term interest rate and domestic credit) that are believed to affect stock prices in the context of the Gulf Cooperation Council (GCC) markets. For this purpose, this paper employed recent time series techniques of cointegration and Granger causality tests. The multivariate cointegration tests identified that oil prices, interest rates and domestic credit have long-term equilibrium effects on stock market prices in four GCC countries. In addition, the Granger causality test highlighted that the causality is running from oil prices to the stock price index in the case of Kuwait, Saudi Arabia and Oman. Also, the causal flow from the domestic credit to the index has been found in the case of Kuwait and Saudi Arabia; while the interest rate has causal effect on the stock price index in the case of Saudi Arabia, Bahrain and Oman. Further assessment of the relationship between these variables, based on generalised variance decomposition and generalised impulse response functions, reveals the importance of oil prices in explaining a significant part of the forecast error variance of the index in Kuwait, Saudi Arabia and Oman. Most of the variations in the stock prices can be captured by innovations in the three selected variables. Therefore, the causal relationship that macroeconomic variables granger caused stock prices are quantitatively supported by innovation analysis.

Download or read book IPO Behavior in GCC Countries written by Abdullah Al-Hassan and published by International Monetary Fund. This book was released on 2007 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper documents the phenomenon of underpricing initial public offerings (IPOs) for 47 firms that went public between 2001 and 2006 in the equity markets of the six Gulf Cooperation Council (GCC) countries. The average initial abnormal returns of 290 percent exceed those found in the existing literature for both developed and emerging markets IPOs. Although the IPOs' returns over the one-year horizon beat the market index benchmark, they present negative abnormal returns once initial returns are excluded, which is consistent with findings in other industrial and emerging markets. The empirical models reject the hypothesis that the IPOs' performance is driven by the common independent variables employed in the literature. On the contrary, in the case of the GCC, country- and industry-specific characteristics, in addition to the timing of the offers, play key roles in explaining the abnormal returns of IPOs. This paper's empirical findings support the hypothesis that investors initially tend to be over-optimistic about the performance of IPOs, but grow more pessimistic over time

Download or read book Stock Market Bubble Analysis written by Thamer Alsedais and published by . This book was released on 2006 with total page 178 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Investor Behavior and the IPO Effect in the GCC Stock Markets written by Raed Michel Farah and published by . This book was released on 2008 with total page 94 pages. Available in PDF, EPUB and Kindle. Book excerpt: Empirical studies have covered the seasonal anomalies in stock market returns fr om an investor behavior point of view i.e. irrationality of investors creates th e January effect, the weekend effect, the turn-of-month effect, and the holiday effect. However, studies have not tackled investor behavior during IPO announcem ents. In the GCC stock market, investors have excess liquidity and are irrationa l in how much they invest upon hearing about an IPO announcement. This project s tudies investor behavior in the GCC stock market during IPOs by accounting for s tock market index returns and looking for anomalies during subscription periods. We do not find consistent evidence of seasonality even though individual (count ry) results show up in the analysis. In particular, we notice a pronounced effec t in cases like Saudi Arabia and Dubai, and a less obvious effect in cases like Oman and Bahrain. The effect is not noticed in Qatar and Kuwait. Furthermore, we notice a similar effect for the overall sample in the bubble and post-bubble pe riods but not in the pre-bubble period, which may be explained by the immaturity of the market during the pre-bubble period. We also notice that the market inde x kicks-off after the end of the subscription period and sustains its increase i n markets like Abu Dhabi, Oman, Qatar, Kuwait, and Saudi Arabia whereas in Dubai and Bahrain the market indices increase transiently only to reach a steady stat e later. Finally, we compare subscription period returns for the full period ver sus that for the first 5 days which are supposed to carry the bulk of the invest ments. We notice this trend in all GCC markets except in Saudi Arabia.

Download or read book Applied Asset and Risk Management written by Marcus Schulmerich and published by Springer. This book was released on 2014-10-20 with total page 491 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book is a guide to asset and risk management from a practical point of view. It is centered around two questions triggered by the global events on the stock markets since the middle of the last decade: - Why do crashes happen when in theory they should not? - How do investors deal with such crises in terms of their risk measurement and management and as a consequence, what are the implications for the chosen investment strategies? The book presents and discusses two different approaches to finance and investing, i.e., modern portfolio theory and behavioral finance, and provides an overview of stock market anomalies and historical crashes. It is intended to serve as a comprehensive introduction to asset and risk management for bachelor’s and master’s students in this field as well as for young professionals in the asset management industry. A key part of this book is the exercises to further demonstrate the concepts presented with examples and a step-by-step business case. An Excel file with the calculations and solutions for all 17 examples as well as all business case calculations can be downloaded at extras.springer.com.