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Abstract

In this paper, some GCC stock markets’ characteristics and features (volatility clustering, reversion to the mean, risk return relationship, leverage effect and weak-form efficiency) were investigated. For this purpose, the following tests . and models were applied: augmented dickey fuller test and the models GARCH )1.1(GARCH-M EGARCH(1.1) GARCH(1.1) (1.1), EGARCH (1.1) and GARCH-M (1.1), using data over a period from 2010 2010/1/1 2013/6/15 until 2013 for all the markets except Kuwait stock markets (its data was until 2012). It was concluded after the implementation that the stock markets of .2012/5/12 Saudi Arabia, Dubai, Qatar, Kuwait and Oman were characterized by all studied features in this work, except for weak-form efficiency. Bahrain stock market was characterized by all the features except for leverage effect and weak-form efficiency whereas Abu Dhabi stock market was characterized by . one feature only (i.e. the reversion to the mean).

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