Author First name, Last name, Institution

Costas Siriopoulos, Zayed University
Layal Youssef, Zayed University

ORCID Identifiers

0000-0003-1368-7182

Document Type

Article

Source of Publication

Investment Management and Financial Innovations

Publication Date

1-1-2019

Abstract

© Costas Siriopoulos, Layal Youssef, 2019 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.

ISSN

1810-4967

Publisher

LLC CPC Business Perspectives

Volume

16

Issue

4

First Page

61

Last Page

71

Disciplines

Business

Keywords

Calendar anomalies, GCC, Halloween effect, January barometer, Other January effect

Scopus ID

85078094252

Creative Commons License

Creative Commons Attribution 4.0 License
This work is licensed under a Creative Commons Attribution 4.0 License.

Indexed in Scopus

yes

Open Access

yes

Open Access Type

Gold: This publication is openly available in an open access journal/series

Included in

Business Commons

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