An Application of the Weak Form of the Efficiency Hypothesis on the Saudi Arabia Stock Market after Tadawul

  • Mohammed Hokroh University of Leicester, UK.
DOI: https://doi.org/10.5296/ajfa.v5i1.3725

Abstract

The aim of this study is to test the efficiency of the Saudi Stock Market (SSM) after “Tadawul” (the entity responsible for operating the SSM). The weak form of the efficiency theory was applied to test the SSM efficiency. The SSM daily stock price returns index was examined using autocorrelation and the run test of randomness from January 1st 2007 to March 18th 2007 (before Tadawul) and from March 19th 2007 to May 29th 2007 (after Tadawul). The results suggest more investigation to be done on the SSM behavioral finance and under reaction and overreaction split to confirm the SSM “efficiency”

Author Biography

Mohammed Hokroh, University of Leicester, UK.

Mr. Mohammed A. Hokroh is a professional Business System Analyst working for Saudi Aramco. He is involved in capital projects, operational and business planning, accountabilities, financial review and analysis and HR organization. He holds a Master of degree in Business Administration (MBA) with specialization in Finance from the University of Leicester, United Kingdom, Leicester and Bachelor of Science in Management Information System with honors from King Fahd University of Petroleum and Minerals, Saudi Arabia, Dhahran. Mr. Hokroh areas of interest are Management Information Systems, systems and database analysis and design, Information Technology and sociality. Financial and Strategic Management, Optimization, Energy Studies, Forecasting, Planning and Budgeting, Statistical Analysis, Project Management, Investment and Financial Analysis, Simulation, Economic Analysis. Human resource Management, Strategy and Leadership, Psychology: Human Behavior, Perception and Social Science.

Published
2013-05-30
Issue
Vol. 5 No. 1 (2013)
Section
Research Articles

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