Stock Returns: Comparison Among Selected Developing Countries

12 Pages Posted: 29 Apr 2016

See all articles by Nawaz Ahmad

Nawaz Ahmad

RTS (Research, Trainings, and Solutions); Institute of Business Management (IoBM)

Rizwan Ahmed

Indus University

Malik Zuhaib

Pakistan Air Force - Karachi Institute of Economics & Technology (PAFKIET), Students

Date Written: March 28, 2016

Abstract

Developing economies behave alike; they have got communalities with reference to economic issues. This study is an attempt to gauge the performance of capital markets of selected developing economies, which include Pakistan, Bangladesh, Indonesia, Brazil and Argentina. The problem, which has been addressed here, is whether average stock returns are same for all the markets or some have potential to produce better returns. The data used in this study is the stock markets prices which are collected from Yahoo Finance website. The data comprises of five years’ daily observations starting from July 2010 to June 2015. Stock returns are obtained and checked for stationarity and all series were found integrated of order zero. The hypothesis of equality of average stock returns for all the markets is analyzed through ANOVA model. Having analyzed, null hypothesis of equality of average stock returns across the stated markets was retained and concluded that capital markets of developing economies behave alike at least with reference to returns.

Keywords: Stock returns, Developing economies, ANOVA

Suggested Citation

Ahmad, Nawaz and Raheem, Ahmed and Zuhaib, Malik, Stock Returns: Comparison Among Selected Developing Countries (March 28, 2016). Available at SSRN: https://ssrn.com/abstract=2771623 or http://dx.doi.org/10.2139/ssrn.2771623

Nawaz Ahmad

RTS (Research, Trainings, and Solutions) ( email )

9th Nishat Lane, DHA 6
9th Nishat Lane, DHA 6
Karachi, Sindh 75500
Pakistan
00923009292422 (Phone)

Institute of Business Management (IoBM) ( email )

Plot # 84
Korangi Creek
Karachi, Sindh 75190
Pakistan

HOME PAGE: http://www.faculty.iobm.edu.pk/staff/nawaz-ahmad/

Ahmed Raheem (Contact Author)

Indus University ( email )

ST-2D, Block 17, Gulshan-e-Iqbal
Gulshan-e-Iqbal
Karachi, Sindh 75300
Pakistan

Malik Zuhaib

Pakistan Air Force - Karachi Institute of Economics & Technology (PAFKIET), Students ( email )

Ibrahim Haidary, Korangi Creek
Karachi
Pakistan

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