Abstract
This paper intends to investigate the existence of daily return anomalies and the weekend effect within Boursa Kuwait, Kuwait’s stock exchange. Kuwait as an economy has continued to be opened up to foreign investment and as foreign funds being to flood into the market; return anomalies akin to those within international markets begin to materialize, bringing new opportunities for abnormal returns and arbitrage. The premise of this paper is the existence of the January effect and the Weekend effect, and uses econometric methods in support of their existence, bringing into question the challenges to market efficiency and the changing landscape for investors and their strategies.
Highlights
Anomalous regularities in security returns have been analyzed for a long time as they represent a great challenge for the equilibrium theories of asset returns
As panel (A) in table (1) shows, there seems to be a consistent weekend effect as the first trading day has significant negative returns for all stocks listed on the Boursa Kuwait
We can see that the last trading day in Boursa Kuwait experiences positive returns, but only significant on the 10% p-value
Summary
Anomalous regularities in security returns have been analyzed for a long time as they represent a great challenge for the equilibrium theories of asset returns. There is the weekend effect where stock returns are found to be significantly negative in the first trading day (Monday) as documented by Cross (1973), French (1980), Gibbons and Hess (1981), Keim and Stambaugh (1984) and Ball and Bowers (1986), to name a few. The Monday effect, as covered extensively by Cross (1973), French (1980), Gibbons and Hess (1981), Keim and Stambaugh (1984) and Ball and Bowers (1986), to name a few; discusses falling or negative returns on a Monday, the first day or the markets opening following closure over the weekend.
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: International Journal of Research in Business and Social Science (2147- 4478)
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
