Are developing stock markets efficient evidence from recent Kuwaiti data

Abstract EN

This study investigates the validity of the weak form of the Efficient Market Hypothesis as applied to the Kuwait Stock Exchange (KSE) using data for the 2000-2015 period and three sub-periods.

Applying statistical analysis and moving average rules, this study provides new evidence of the KSEs inefficiency.

In particular, the empirical results indicate that moving average strategies successfully predict the KSE index’s returns.

Furthermore, the sub period results suggest that the KSE will not achieve greater efficiency despite the introduction of new regulations, an upward trend in accounting disclosures, and the development of market microstructures.