Political risk and market efficiency: tests based in British stock and options markets in the 1987 election

Article Abstract:

An investigation was conducted on how the 1987 British elections affected the stocks and options market by comparing their prices with information gathered from opinion polls. A market model assumed a relationship between the chances of a Conservative victory and the level of the Financial Times Stock Exchange 100 Index. Results concluded that information in the stock market was efficient while the options market information was not. It was further established that the national elections gave rise to speculative bubbles and that options prices indicated conditions that traders expected in the market.

Influence, Elections

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Efficiency and inefficiency in thinly traded stock markets: Kuwait and Saudi Arabia

Article Abstract:

A study was conducted on the thinly traded stock market exchanges of Kuwait and Saudi Arabia. The autocorrelation and runs tests were applied on 36 Kuwaiti stocks and 35 Saudi stocks traded between 1985 to 1989. The results showed all Saudi stocks violated independence assumption whereas only 14 Kuwait stocks were in violation. The difference is attributed to the stock exchange mechanism of each country. Kuwait's stock exchange is based on centralized auctioning while the Saudi stock exchange allows a 12-bank monopoly over the market.

Security and commodity exchanges, Saudi Arabia, Securities, Kuwait

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Equity markets and growth: cross-country evidence on timing and outcomes, 1980-1995

Article Abstract:

A study of the development of equity markets is presented with emphasis on their macroeconomic effect. Information from forty-seven countries for the years 1980-1995 was examined to work out vector autoregression.

Research, Economic development

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