Authors:Farhana Yasmin Abstract: This paper is focused on the idea of whether Dhaka Stock Market (DSM) is efficient in weak-form of Efficient Market Hypothesis (EMH) or not. As any country’s economic condition can be indicated by the efficiency of its stock market, so determining and measuring the different forms of efficiency has always been a well explored topic for researchers. In this paper, attempts have been made to determine and test the market efficiency and randomness of Dhaka Stock Exchange (DSE) in weak form. The entire Dhaka stock exchange has been evaluated by employing daily return from the two indices- DS30 and DSEX. Employing the normality test it is found that both the return series are not normally distributed. Moreover few parametric tests named Augmented Dickey-Fuller test (ADF), Autocorrelation Function (ACF), and Variance Ratio test (Lo & MacKinlay) have been done to examine the historic price dependencies or to examine the random walk hypothesis. The entire test results suggested that DSE is not efficient in weak form which means return from DSE does not follow a random walk. PubDate: Sat, 26 Mar 2022 23:02:18 -070
Authors:Rana Shahin; Manal Khalil, Helmy Sallam Abstract: This research examines the impact of interest rates on the risk-taking appetite of banks in Egypt and how income diversity influences their risk-taking. Furthermore, it contributes to the literature by investigating the association between the interacting effect of interest rate and income diversity shares on bank risk-taking. The sample includes 22 banks operating in Egypt spanning from 2011 to 2020. For the analysis, the cross-sectional time-series generalized least squares regression (GLS) approach is employed. The results reveal that low-interest rates exacerbate bank risk-taking. In addition, larger income diversity restricts the risk-taking behavior of banks. Importantly, the results show that banks with higher levels of income diversity push for less risky positions during the low-interest rate period. Hence, the results provide valuable insights into the importance of the moderating role of income diversity strategies. The results are robust to different proxies of bank risk-taking. The policy implications from this research indicate that bank managers and regulators in Egypt as well as in similar emerging economies shall promote income diversity strategies to ensure the safety and soundness of the banking system at times of low-interest rates. PubDate: Tue, 22 Mar 2022 18:18:59 -070
Authors:Antoine B. Awad; Lena A. Seissian, Robert T. Gharios Abstract: In their path of searching for additional sources of information for better-informed decision-making process, market participants are presented with Voluntary disclosures. This paper aims at examining the determinants of voluntary disclosures in the GCC countries. A cross-sectional multiple regression analysis with a sample size of 74 listed firms from the GCC equity markets shows that leverage and economic sectors dominated mainly by “Real Estate” and “Services/Insurance”, have statistically significant impact on voluntary disclosure. A remarkable finding of this paper indicates that the profitability variable measured in terms of return on equity (ROE) significantly explains the variation in the voluntary disclosure score in all sectors except for the “Services/Insurance” one. PubDate: Wed, 16 Feb 2022 23:56:44 -080
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