Ihereby affirm that this thesis is my own work and that, to the bestof my knowledge and confidence, it comprises no materialhithertoprintedby another person nor material, which to a anextensive extent has been acknowledged for the award of any other PhDof any university or other institute of higher learning, except wheredue acknowledgment has been made in the writing.
RESEARCH ANALYSIS FOR THE FINANCIAL DATA OF BANKS LISTED ON DUBAIFINANCIAL MARKET AND THEIR EFFECT ON ITS STOCK PRICES
A Thesis Submitted For the Degree of Doctor of Philosophy in theFaculty of Finance, the University of…………………
Thisthesis examines extent to which the established financial data ofbanks listed in the Dubai Financial Market (DFM) affect the pricetrends of their shares. DFM is among the emerging financial marketsthat have enabled the economy of Middle East states to flourish. DFMwas instituted in 2000 with an aim of offering proficiency servicesto all shareholders. The company operates as a secondary tradingmarket for securities issued by different local and governmentalfinancial institutions. The main purpose of the thesis is toinvestigate the financial data of banks listed within DFM and theireffect on the price trends. The main objective is to examine thefinancial statistics of banks listed on DFM and offer analysis of itsstock prices. Using possible statistics including Z-score, varianceration, multiple regression analysis, and regression tests, as wellas, utilizing monthly financial data reports, the study offerseffective empirical support for the research hypothesis. Therefore,in order to answer the research question, “are published financialdata of banks listed within DFM affect the price trends of theirshares?” the research develops research hypothesis. The aim of thehypothesis is to determine whether there is a significantcorrelationbetween dividends distributions and share prices. Thehypothesis also tests the independent and dependent variables todetermine if a relationship exist between assets size of the banksand its share prices in DFM. The thesis utilizes both secondary andprimary research studies to accomplish the intended studygoalsefficiently. It conglomerates both qualitative and quantitativeresearch design to gather adequate information. It interprets datausing descriptive data analysis and present results, as, well as,offer further recommendations for future research study.
Withsincere gratitude and appreciation, I wish to acknowledge with manythanks to God and my supervisor, as well as, my fellow colleagueswhose criticism, advice and material assistance helped to accomplishthis thesis. I am greatly indebted for my supervisor who guided methrough the entire research process. Without the devotion,co-operation, and guidance of my supervisor, this thesis could be amyth. Thanks to those who have helped me in matters of finance butabove all, I express my appreciation to my family for cooperation,and peace of mind to fulfill this piece of work.
Table of Contents
CHAPTER ONE 8
Research Background 9
Definition of the Problem 10
1.4. Purpose of Thesis 11
1.5. Study Objectives 11
1.6. Hypothesis Testing 12
2. 0. CHAPTER TWO 13
2. 1. Literature Review 13
2.2. Background of Dubai Financial Market 13
2.3. The Extent to Which Financial Data of Banks Listed within DFM Affect the Price Trends of Their Shares 15
2.4. Impact of Interest Rates on Stock Prices in the DFM 17
2.5. The Effect of Banks Announcement and Share Prices in the Dubai Financial Market 19
CHAPTER THREE 21
3.1. Methodology 21
3.2. Research Methods and Design 21
3.2.1. Quantitative Design 21
3.2.2. Qualitative Design 22
3.3. Data Collection Methods 22
3.3.1. Sampling Method 22
3.3.2. Annual Reports and Content Analysis 24
3.4. Research Instrument 25
3.5. Validity and reliability 27
3.6. Data Analysis 27
3.7. Description of Data 28
3.8. Limitation of Study 28
4. 0. CHAPTER FOUR 30
4.1. Findings/Results 30
4.2. The Impact of Interest Rates on Stock Prices in the Dubai Financial Market 30
4.2.1. Regression Test 30
4.3. The Extent to Which Financial Data of Banks Listed within DFM Affect the Price Trends of Their Shares 32
4. 4. The Effect of Banks Announcement and Share Prices in the Dubai Financial Market 34
4.5. The Relation between Dividends Distributions and Share Prices in DFM 36
4.6. The Relation between Assets Size of the Banks and Its Share Prices in DFM 38
5.0. CHAPTER FIVE 39
5.1. Discussions 39
6.0. CHAPTER SIX 42
6.1. Conclusion and Recommendations 42
6.1. Conclusion 42
6.2. Recommendations 43
Reference List 44
Appendix One: 48
Appendix Two: 50
List of Tables
Table1: Table Indicating Listed Banking Companies in the Dubai FinancialMarket………… 51
Table3: Target Population and Sample Size of Participants…………………………………….26
Table3: Simple Regression Test…………………………………………………….…………..30
Table4: Significant Of Established Financial Data………………………………………………32
Table5: Share price daily returns during the announcementperiod………………………………..……35
CBOE – ChicagoBoard Options Exchange
DCF – DiscountedCash Flow
DFM – Dubai Financial Market
DFMGI – SearchResults
DFMGI – Dubai Financial Market General Index
DIFX – Dubai International Financial Exchange
ESCA – EmiratesSecurities and Commodities Authority
GCC – GulfCooperation Council
GDP – GrossDomestic Product
IC – IntellectualCapital
ICD – InterCorporate Deposits
IPO – Initial Public Offerings
OLS – OrdinaryLeast Square
RBV – ResourceBased View
ROE – Returnon Equity
TR – TotalRevenue
UAE – United Arab Emirates
TC – TotalCost
VR – VarianceRatio
Numerous studies have been conducted on diverse facets of DubaiFinancial Market focusing on the effect of financial data on theprice trends of their shares. However, contradictory results aresuggested within this study mostly because only some publishedfinancial data of banks listed within DFM are investigated.Accordingto Wilkins and Barbara, DFMhas developed faster into a leadingfinancial market across the United Arabs Emirates region1.The strategic efforts and further initiatives by government havereinforced Dubai as a strategic center of excellence in the businessworld. This has heightened it as a dominant capital market hub, whichis best for transnational practices to meet the changing needs ofcustomers. DFM functions as a secondary bazaar for the transaction ofsecurities that public shareholder corporations and bonds that localmanagement issues2.It also operates as a trading of securities issued by publicfinancialinstitutions, mutual funds and,local, as well as, foreignDFM, which is approved by financial instruments. In order tounderstand how published financial data of banks listed within DFMaffect the price trends of their shares, analysis of its stock priceswill be conducted. Therefore, the project will study the financialdata of banks listed on DFM, and offer analysis of its stocks prices.
Keywords:Dubai Financial Market, United Arab Emirate, Market capitalization,and Stock prices.
The United Arab Emirates are grappling with the recent severefinancial crisis, and so far, they have made significant efforts toavoid banking or financial crisis. The financial markets, regionaland emerging markets in general have been relatively weak andvolatile for the past decades. The financial markets all sharedsimilar features with respect to diminishing indices and tradingvolumes. DFM recorded 17 % decline of general index unveiled by theend of fiscal year of 20123.Marketcapitalization decreased tremendously by 9.5% reaching to AED,about 180 billion at the end of the financialyear of 20114.The UAE stock markets despite their recent growth are somewhat smallas compared to the larger stock markets of the industrializedeconomies. Although there are 12 banks listed in the DFM, most of thestocks are dealtintermittently, and there is generaltransactionvolume. Even though foreign trading on DFM declined tremendously,financial market remained positive hence, reinforcing the positionof DFM as a market that unremittingly attracts foreign investment.
According to Al-Ajmi and Kim, GCC markets including banks in UAE arerelatively unregulated and there is a lot of dumping, hyping, andinsider trading5.DFM is however trying to advance the trading sessions by enhancinginformation efficiency and maintaining transparency of the financialmarkets. Speculators are watching in order to determine if the banksare transparent and offer efficiency information. Financial data iscrucial for achieving and sustaining a well-organized, providentbusiness. Investors demand for pertinent financial information thus,many accounting businessexperts, andforecasters are now seeing IC asa driver for a lasting business competitiveness in a company6.There is an emerging view among practitioners and scholars arguingthat integration of financial measures into indicators of performancerequires a new reporting model7.This is vital because it will boost investors’ understanding offinancial data and operations of companies. For this reason,understanding financial data of banks listed in the DFM and the wayit affects the price trends of the company shares is imperative.
Definition of the Problem
The global recessionary trend, which reduced the price for petroleumoil more than half since the economic depression of 2008 has beenaspect affecting financial markets. Many member countries continue toexperience unprecedented financial liquidity issues as oil pricesstill remain high8.Despite the strong tightening in liquidity across the globe, whichwas stimulated by the international credit crunch, economic growth inthe Middle East states has doubled the IPO value in the recentdecades. Regional IPO’s have increased tremendously and DIFX becamethe largest ever for Middle East IPO surpassing the previous recordset by Saudi Telecom in 20039.As far as economic importance of stock market is concerned, it isvital to note that stock exchange can affect the price trend in themarket. Literatures have attempted to establish a positivecorrelation between the level of financial development and economicgrowth in UAE economies10.Theoretically, there are two significant arguments that relate stockmarket development to the investment and economic growth of acountry. Therefore, understanding the extent to which financial dataof banks listed with DFM can affect the price trend of their sharesis imperative. This is because it can enable the financial marketsdevelop effective policies vital for enhancing the stock market andachieve successful economic growth of a country.
1.4. Purpose of Thesis
Studying the financial data of banks listed on DFM is among the mostremarkablesubjects. DFM is among the significant evolving stockmarket exchanges of UAE, and it is the major backbone of economicgrowth in the Gulf region. This is because they undertake the majorprojects and they have a capacity to attract substantial capital.They represent numerous base of growing economic sectors within thelocal and international sphere. Although these listed companies arethe backbone of economic growth, they face a number of issues thus,this study examines the extent to which financial data of such banksaffect the price trends of their shares.
1.5. Study Objectives
To examine the financial data of banks listed on DFM and offer analysis of its stock prices.
To examine the extent to which financial data of banks listed within DFM affect the price trends of their shares.
To investigate and measure the trends of shares in developing stock markets in order to determine their impact on the trading sessions.
To examine the effect of interest rates on stock prices in the Dubai Financial Market.
To investigate the effect of banks announcement and share prices in the DFM.
To determine the relation between dividends distributions and share prices in DFM.
To determine the relation between assets size of the banks and its share prices in DFM.
1.6. Hypothesis Testing
Despite the fact that interest rates are the major determinants ofstock prices in DFM, the study hypothesizes that the interest ratesdoes not have a strong clarification in predicting stock prices.UsingZ-score, regression tests, and other possible statistics, thestudy offers empirical support for the research hypothesis.Therefore, in order to answer the research question, “are publishedfinancial data of banks listed within DFM affect the price trends oftheir shares?” the following hypotheses were developed.
H1:There is a statistical correlation between the interest rates andmovements in stock prices for companies listed in the DFM.
H2:There is no statistical correlation between the interest rates andmovements in stock prices for companies listed in the DFM.
2. 0. CHAPTER TWO2. 1. Literature Review2.2. Background of DubaiFinancial Market
A number of literatures have attempted to examine the financialmarkets of the United Arabs Emirates. The UAE government created twofinancial markets including DFM and ADSM after the approval of stockexchange policy11.DFM was established in 2000 with an aim of providing efficient andinnovative services to stakeholders. Prior to the establishment ofthe financial markets, the exchanging of stocks took place but in anunofficial parallel market. The automatedtransaction later emergedafter the official opening of the two monetary markets. The DFM beganoperating officially in March 2000 mainly as a trading market forsecurities before expanding to stock exchange12.The ESCA that the government, which was instituted in 2000 monitorsthe activities of the DFM, and its stock market haveaugmentedimmensely since itsinstigation. The market capitalizationalso increased from $ 44.5 billion to $ 120 billion in 2003 and 2012respectively13.Rigobon and Sacks delimit market capitalization as the value of astock segment multiplied by the completequantity of outstandingshares14.
DFMis a stock exchange market with more than 61 listed firms as per theyear 2012, many of them which are the UAE based companies15.However, there are currently 12 banks listed on DFM as indicated intable one, which is in the appendix two section. DFM was created as apublic organization operating as secondary exchange of securities.These securities are issued by different local and governmentalfinancial institutions. It is the largest world class financial andlocal market that offer stakeholders with innovative services in anefficient manner. The DFM philosophy is founded upon the better andinnovative business culture. It is defined by its strong mission andvision, as well as, core strategic values. The strategic values arevital for implementing a growth strategy for ongoing commitment ofDFM to enhance effective operation for the benefits of its investors.The board of directors of DFM implemented a vision and mission, whichis built on its efforts to enhance a foremost financial market amonglocalfiscal markets16.DFM offer effective opportunities to the communal to invest infinancial securities. They regulate the process of trading securitiesand organizes the transfer of security ownership. They do thisthrough an effective depository and clearing process. The DFM alsoconducts statistical analysis about securities in order to offeradequate information to investors.
2.3. TheExtent to WhichFinancial Data of Banks Listed within DFM Affect the Price Trends ofTheir Shares
To a larger extent, financial data of banks listed within DFM affectthe price trends of their shares. The disclosure of information bythe listed companies revealed that there are tremendous effects ofbanks announcement, and interest rates are the main determiningfactor of the DFM stock markets. The DFM stock markets areunregulated but the authorities have made significant efforts toimprove transparency and efficiency of financial data in the market.Given the fact that there is existence of information inefficiencies,it is surprising that speculators are the determinants of the stockmarkets in the UAE market. Most of the stock investors and financialanalysts do not use valuation modelssuch as DCF. Moreover, the stockvaluation do not take into considerations some of the determinantfactors of stock prices. One of thedisregarded factors is possiblythe interest rates given the fact that culture of debt financing inthe Middle East economies in not yet mature unlike developedeconomies. This is because theinterest expenses in the developedeconomies do not have a significant influence on stock prices andcash flows.
A recent study conducted in Dubai by Lim and Robert revealed thattotal revenue created an effect on stock prices17.The research study conducted interviews with the top managers of themajor DFM companies in order to determine the effect of interestrates on stock prices and market shares. The study report revealedthat most managers believe that variations in the stock prices oftheir companies were driven by variations in the total revenue. Theybelieved that changes in the number of consumers of products andservices created variations in total revenue. Somedirectorsinterrogated cited production costs as among the motivatingaspect of the stock prices18.However,none of the directors declared that interest rates was the keyfactorof the stock market. Another similar research study conducted by Leesselected randomly some investors at the DFM and sampled them19.The study conducted semi-structured interview with an aim ofdetermining if interest rates affected the stock market of the DFM.The largest percentage of investors responded that interest ratesaffected the stock prices of many banks listed in the DFM.
Ndri argues that when financial markets are (weak-from) efficient,the stock prices reflect past prices and trading of securities ateach point thus, affecting the true stock value20. The result of this is the optimal resource allocation in all socialand private sectors. In other words, efficiency eliminates marketprevarication and arbitrage opportunities based on partisaninformation. Therefore, there is no opportunities for earningabnormal profits and the banking companies may fail to drivefinancialforecast. DFM has been long recognized as the driving aspectof the UAE economy, and apowerful stimulant of financialgrowth. It isthrough the financial markets that government and firms raisescapital vital for infrastructuraldevelopment. They help in advancingcorporate governance through shareholder participation and improvesresource allocation.
2.4. Impact of InterestRates on Stock Prices in the DFM
Interestrates on stock prices in Dubai have been among the major aspects thataffect stock prices of DFM21.Although the financial theory indicates that interest rates are themajor factor determining the stock prices, literature indicates thatinterest rates does not have a strong explanatory power in predictingstock prices22.The principles of asset valuation, which is based on the DCF modelreveals that the intrinsic value of a company (expected share price)should be relevant to the current value and its future cash flows23.
Theequation below attempts to offer a brief overview of general factordeterminants of stock prices in the financial market.
([P.sub.o]= [CF.sub.1]/ (1+r) + [CF.sub.2]/ [(1+r).sup.2] + … + [CF.sub.n]/[(1+r).sup.n]Whereby:[P.sub.o] = Intrinsic Value(Anticipated Share Price)CF = Cash flow per sharer = Rateof dicsount
TheDCF model is an effective technique employed for calculating thepresent value of future cash flow hence, determining the impact ofinterest on stock prices. Lower discount rates and higher profits inthe future raises stock prices. TC affects revenues, which in turnaffect the stock value. Therevenues of a firm are calculated in termsof TR minus totalexpenses. The TRis realized from additional sales ofunits of commodities and the number of units traded depends on the TRof a consumer. Although the firm may control or reduce productioncosts by using different techniques, interest rates is among thecomponents of the total cost that might be difficult to control.
Most scholars argue that macroeconomic milieu has substantial effecton the stock market capitalization through interest and exchangesrates, GDP, indices, as well as, money supply24.DFM accounts for the second largest capitalization of monetarymarkets in the Gulf region. The DFM is imperative because ofdifferent factors one of them being an emerging capital market. Thesecond is that DFM is the largest market in the Gulf area in terms ofmarket capitalization25.The UAE financial market seems to embrace market based economicbeliefs and trade liberation paradigm making the DFM a successfulfinancial market. However, the accounting profession practicesemployed in the UAE financial markets tends to differ from those ofdeveloped financial markets in the United States, UK, and Australiathus, a significant variation of the financial markets in the Gulfregion.
Eggertargues that the UAE still measures the monetary markets belowstandards of ICD practices26.They have a regulators framework that features diverse disclosurelegislations. The financial forecasters need to investigate furthertoline up the accounting standards of UAE with the legislatures of theindustrialized economies. ICD can have an effect on the fiscal dataof the company when using the financial disclosure to redirect focusduring loss-makingperiod27.This technique downplays the question concerning the managementpractices that arise during the low profitability times. Therefore,the confirmatory and dis-confirmatoryapplicationemployed tointerpretICD attemptto reveal the way financial stakeholdersinterpret the financial data available in the annualreport of the DFMcompanies.
2.5. The Effect of BanksAnnouncement and Share Prices in the Dubai Financial Market
Bankannouncement and share prices have great impact on stakeholders orinvestors who have shares in the listed companies in the DFM. Themain stock index in Dubai sank by 4 % on Saturday after theannouncement from the central bank of the UAE warning that theproperty market of the country could be close to overheating28.The drop was steeper for the last three weeks and this was close to4, 7771.00 points29.There is an already impact resulting from an effect of the centralBanks’ regulations on the banking sectors. The share prices of DFMfall of about 10% was too copious. Moreover, rumors that AabarInvestments, a fund owned by the Abu Dhabi government rattledinvestors. The trouble just came in as the DFM got an upgrade ininternational status30. There was a confusion in the market that affected every single sharein the market. The trust in the market had shaken and there was adomino effect every time the stock market went down.
Thestudy byArango, Gonzalez and Posada examined the relation of banksannouncement and share prices in the DFM31.The authors found that there was a significant correlation betweenbanks announcement and share prices in the financial market. Asimilar study was conducted by Ehrmahh and Fratscher to determine theeffect of banks announcement and share prices. Ehrmahh and Fratscherrevealed that shareholders of acquiring firm either gain small orlose a small significant amount from the announcement of a mergerbid32.The authors also examined the effect of mergers on the affluent ofbidding shareholders from the DFM firms. According to their findings,bidding firms gain significantly during the twenty one dayscontributing to the announcement of each of their first four mergerbids. However, the study findings fail to support the capitalizationhypothesis that the gains of bidders are captured at the initialprocess of merger programs.
CHAPTER THREE3.1. Methodology
The section of methodology presents effective techniques that theresearcher employed to determine if the published financial data ofbanks listed within DFM affect the price trends of their shares. Itincluded the rationalized data collection techniques and researchinstruments employed to collect information. In this section, theresearcher included data collection methods, and how they wereconstructed. It included data description, validity and reliabilityof the study. The methodology section further provided limitations ofthis research study.
3.2. Research Methods andDesign
The study combined both qualitative and quantitative research designtechniques in order to determine if the published financial data ofbanks listed within DFM affect the price trends of their shares.Combining both research techniques is one of the effective aspect inresearch because itenables the researcher to collect sufficientinformation.
3.2.1. Quantitative Design
Quantitative approach took the form of experiments and this is wherethe researcher attempted to test the hypothesis using all possiblestatistics including Z-square, regression and among other statisticaltests. The rationale behind using quantitative research design isbecause it attempts to create an integrated framework for examiningthe link between interest rates and movements in stock prices forcompanies listed in the DFM. Furthermore, quantitative researchpresents financial analysts of DFM with variables or proxies that aresignificant in identifying codes and concepts. According to Arango,Gonzalez and Posada, the concepts being labeled are mostly acquiredfrom the existing literature materials, and can draw the attention ofresearcher to their existence in the case data33.Within the RBV context, the current study is aimed at investigatingthe extent to which financial data of banks listed within DFM affectthe price trends of their shares. Therefore, the researcher applied aquantitative research approach, using statistical analysis of contentanalysis findings to examine the relationship between the interestrates and movements in stock prices for companies listed in the DFM.
3.2.2. Qualitative Design
Although this study focused mostly on quantitative study, theresearcher undertook a research study by using an inductive approach.The use of inductive approach is imperative in research because thisapproach is more effective in qualitative research method than inquantitative study. Inductive research approach involves thegeneration of information through interviews, observations anddescriptions. The researcher employed qualitative approach becausethis technique is less expensive, and it focuses on small bankinggroups by carrying out sample surveys. The rationale behind using thequalitative approach is that it helps the investigator to developtheories vital for understanding the financial marketing world.
3.3. Data CollectionMethods3.3.1. Sampling Method
Useof sampling is an effective technique for gathering information fromthe targeted population of study. The researcher designed a samplesurvey, which was simple and easy to complete in order to achieve theintended study objectives efficiently. Sampling method is a subsetfor the study population, which is being selected by probability ornon-probability34.Therationale behind using sampling technique was to collect data about acertain group without taking measures of the entire population. Thisis imperative because it facilitates the researcher to save time andresources. The researcher sampled the population of interest andlimited the sample size in that 1 person represented 100 persons, asthis could save resources. The research employed inclusion criteriaby choosing participants of all racial, cultural, religion, andgender categories. The participants included top managers,depositors, accountants, investors, and among other stakeholders ofdifferent categories.
The researcher conducted semi-structured interview in order tocollect the prerequisite data for addressing the objectives of thisstudy. The use of semi-structured interview is imperative inqualitative study because it helps the researcher to gain in-depthinformation and a wider comprehension of the constructs within theresearch35.Semi-structured interview offers the investigator an opportunity toamass sufficient information about the impact of interest rates onstock prices in the DFM. Therefore, this interview is the mostsuitable technique in the research study. The rationale behindchoosing this type of data collection technique is because it offersa balanced, comprehensive and sufficient information from theinterviewees. It provides the investigator enough flexibility tomodify the boundaries of the research throughout data collectionprocess. This is imperative because it helps the researcher toaccommodate new information, which may arise from the interviews.Despite being an effective technique, it is subjected to variedlimitations such as low response rate, and consumes too much time.Therefore, it is significant to recognize such limitations whencollecting information in the DFM.
3.3.2. Annual Reports andContent Analysis
Theresearch used content analysis for the categorization of annualreports of financial data for different banks. The researcher usedannual reports of financial information for various companies listedon the DFM for various reasons. One of the reasons is because theinternal and external users consider annual report as the source ofcompany information. The second reason is that annual reportsdiscloses information that correlates with the volume of corporateinformation communicated to the stakeholders and the market throughuse of media36.Annual report provide regular information usually in a year, and insuch, they offer an opportunity for meaning analysis and comparisons.The last reason for using the annual reports was due to the fact thatannual reports often present financial industries with an opportunityto increase their communication with investors. This is becauseorganizations are able to report both financial andnon-financialdata, indicating the firm value, as well as, position.Therefore, the researcher analyzed these annual reports to determinethe effect that the published financial information will create onprice trends of the corporate shares.
Similarto the ways in which content analysis has been employed in previousstudies therefore, this study also utilized content analysis in thecurrent study. The researcher used content analysis to analyze thepublished 2011 annual reports objectively, reliably, andsystematically. The study used 2011 annual reports of the 12 bankslisted on the DFM as its source of information principally becausemost of the companies have not yet published the 2012 and 2013 annualreports. The annual report of 2013 was required to check the effectof interest rates on stock markets. However, the existedtime lagbetween interest rates and stock market created an effect on thestock prices. A number of studies have attempted to reveal that thereis an inevitable time lag between augmented transparency, anddisclosure of financial data, as well as, financial performance ofcompanies37.The variation that results because of existence of time lag betweenthe two variables tends to create an impact on the stock market.
Moreover, the researcher downloaded the 2011 annual reports of the 12companies listed on DFM in PDF format form from various websites ofthese companies. The researcher analyzed the annual reports of the 12listed companies in order to extract the ROE for each company. Theauthor coded directly the content of the annul repots to prevent thereference frame applied from having an effect on reliability. Theauthor re-examined the annual reports at different intervals in orderto ascertain steady identification of the contents of the differentannual reports. This process enabled the researcher to scrutinize theunderpinning assumptions of the research in analyzing the contentwhile at the same time enhancing the quality of data generated fromthe content analysis.
3.4. Research Instrument
The researcher utilized questionnaires as an effective researchinstrument for obtaining the primary data for this research.Construction of the questionnaire for this research was extensivelybased on literature review and similar questionnaire surveysconducted in the Gulf region. The researcher formulated the set ofquestions, which are indicated in appendix one in appendix section toobtain data from the sampled population. The researcher used theresults from the questionnaires for further analysis and hypothesistesting. About thirty (30) questionnaires were administered via emailto the selected participants, but only twenty (20) were dulycompleted and returned. The researcher drafted the final copy of thequestionnaire and reviewed it several times before sending it to theparticipants. This was then pilot-tested and distributed to numerouspilot group of different users including the banking managers,institution investors, credit officers, depositors and otherstakeholders. The research used descriptive statistic and tables toextract opinions of question raised in the research study. The samplesize and response rate for each user group are presented in table twobelow, and briefly analyzed in the chapter four section.
Table 2: Target Population and Sample Size of Participants
Response Rate in (%)
1, 320, 500
3.5. Validity andreliability
Reliabilityand validity are among the effective criteria that helps theresearcher to define the quality of the study. According to Creswell,reliability deals with consistent while validity deals with thetruth38.Anumber of studies have attempted to emphasize on the need for testingvalidity and reliability of the instrument before the initialresearch survey39.Therefore, these concepts are crucial in proving consistent of theresearch methods employed to determine if conclusions are valid andmeasures are free from random errors. The researcher mitigated thethreats of sample size, established information,and codinginformation atteststo ensure the validity, as well as, reliabilityofcontent analysis. The researcher recorded data and interpretederrors in order to reduce validity, as well as, reliability ofinformation.
3.6. Data Analysis
Inthe process of answering the research question, “are publishedfinancial data of banks listed within DFM affect the price trends oftheir shares”, this study considers the uses of a Chi-Squarestatistic, VR test, Z-score, regression and among other possiblestatistics. Chi-Square is an effective statistical method fromtesting the hypothesis raised in this research study. Rao argues thatChi-Square is an effective technique for determining if an observeddistribution of answers display a significant difference from ahypothetical distribution of answers40.
3.7. Description of Data
The data used in this study was obtained from DFM, and it includeddaily sectorial indices for the DFM from 2010 through 2011. Theresearcher used varied statistical tests including variance ration,chi-square tests, regression and multiple regression analysis toachieve the intended purpose of the study. Non-stationary seriessuggested that there was absence of temporal dependence in thefinancial information building. This was consistent with pricefluctuations that were not subjected to a deterministic time trend,in which updates occurred only with new financial information.Freixas and Jean-Charles suggest that the use of variance-ratio (VR)is an effective statistical measure for testing the random walkhypothesis41.However, this procedure is not satisfactory on its own to analyze theimpact of financial data on the stock prices. Although when theresearcher rejects random walk, the series analyzed are seriallycorrelated as the alternative hypothesis. Therefore, there is a needfor further testing using other possible statistics to offer anaccurate analysis on the impact of financial data on stock prices onits shareholders with the Dubai Financial Markets.
3.8. Limitation of Study
Time, language barrier, and cultural issues areamong the main limitations of the study. Most of the DFM banksoperates in a diversified cultural environment thus, culture canimpact data collection techniques if not taken into considerationsseriously. Getting the necessary sample size was a challenging aspectbecause it was not be possible to track respondents online.Moreover, using uneven groups posed the risk to the internal andexternal validity. It can be noticed that when using time seriesdesign, subjects may fail to perform better in the first test, inquantitative analysis but do better in the second one and vice-versa.
4. 0. CHAPTER FOUR4.1. Findings/Results
Chapterfour section presents findings from the study by examining data andstatistical analysis of the study. In this section, the researcherpresents deep analysis of information by using descriptive analysisto offer a sketch of data findings. The results includes the use ofvaried statistics used in the study to present the findings of theresearch hypothesis.
4.2. The Impact of InterestRates on Stock Prices in the Dubai Financial Market
To empirically analyze the relationship between interest rates andstock prices in the DFM, the researcher used annual financial datareport of 2011 for the listed companies in the DFM to measure stockprices and interest rates. However, due to unavailability of data forall listed companies prior to June 2012, the researcher limited theempirical analysis to only 7 observations from June 2010 through2013. The researcher obtained data set from the trading economicwebsite from the wall street journal and used the data to carry outregression tests42.
4.2.1. Regression Test
Theresearcher performed regression analysis to test for possibleexplanatory power of interest rates with respect to stock prices. Theresearcher used logs to eliminate any biasness that could arise dueto non-stationary nature of variables by standardizing their scales.The investigator used five months lagged values of the independentvariable to capture possible lagged effect of interest rate on stockprices. The following is a simple regression model for estimating thevalues.
Log[(DFMGI).sub.t] = a + b Log[(CBOR).sub.t-i] + [E.sub.t](1)Where[(DFMGI).sub.t] = Level of general index of stockprices in the DFM at time tb = Slope of the stockprices/interest rate relationship[(CBOR).sub.t-i] = Level ofinterest rate in UAE at period t-ia = Intercept[E.sub.t]= Error term at time t
Therefore,to capture possible lagged effects, the researcher carried out 1through 5 lags (i=1-5). Table three below displays the regressionresults. It can be noticed that the slope coefficient isstatistically insignificant for the concurrent, and all the 5 laggedvalues of the independent variable. These findings supports theopinion that interest rate does not have any strong explanatorypowerin forecastingthe stock prices in the Dubai Financial Markets.
Table3: Simple Regression Test: Log [(DFMGI).sub.t] = a + b
Log[(CBOR).sub.t-i]+ [E.sub.t] June 2010-January 2014
I=Numberof Lags (b) T-statistic
0 -.18 -.03
1 -.81 -.17
2 +.17 +.13
3 -.06 -.01
4 -.04 -0.2
5 -.02 -0.0
4.3. The Extent to WhichFinancial Data of Banks Listed within DFM Affect the Price Trends ofTheir Shares
Anumber of user group were asked if financial data of banks within DFMaffect the price trends of their shares. The researcher utilizedsample surveys and analyzed the annual reports in order to determineif financial data of banks within DFM affect the price trends oftheir shares.The researcher distributed sample questionnaires todifferent age groups including males and females aging18 years oldand above. However, the sample was predominantly 80 % of males withonly 20 % of the sample females. Most of the people sampled were welleducated with 75% holding financial and accounting qualification orhaving attended financial courses. The remaining 25 % had experiencein finance or accounting subjects. The study result ranged theopinion of the participants in terms of percentage rate beginningfrom not significant to extremely significant. The table four belowpresents the information provided regarding the significant ofestablished financial data of banks within DFM.
Table4: Significant Of Established Financial Data
Classifications of participants
Total in (%)
Asmentioned earlier, corporate annual reports are the driving vehiclethat helps firms to communicate information to the external users.Annual reports should contain sufficient information for theprofitability, future performance, liquidity, investors and othersignificant users of financial data of the firm. Therefore, in thisstudy, the researcher employed the sample survey instrument to elicitthe perceptions of external users about the significant of corporateannual reports issued by DFM firms. The study relied on both primaryand secondary data as the source of information in order to addressthe extent to which financial data of banks listed within DFM affectthe price trends of their prices. Evidence from secondary datarevealed that the financial data was manifested strongly in stockprices. The information also derived from financial data reportshelps investors to make investment decisions efficiently.
4. 4. The Effect of BanksAnnouncement and Share Prices in the Dubai Financial Market
Anumber of studies found that banks announcement had an effect onshare prices in the DFM. According to the study conducted by Al-Ajmiand Kim, it was found that bank announcement had an impact on theshare prices43.The authors found that there is a positive correlation between theabnormal reevaluation of the industry and changes inoperatingperformance announced.The study employed operatingperformance analysis model to examine the operating performance ofthe firms. The aim was to determine if the performance of the banksduring the announcement period had an effect on share prices. Thefollowing five four reveals the results of share price analysis andinterpretation during the announcement period. The informationprovided in the table is imperative in helping investors to makesignificant investmentdecisions.
Table5: Share price daily returns during the announcement period.
Return in (%)
Cumulative Return in (%)
The researcher conducted multiple regression analysis to investigatethe relation between assets size of the banks and its share prices inDFM. Multiple regression analysis offer a more balanced perspectiveabout the relative significant and contribution of each variable inexplaining the variability of the dependent variable44. In this study, the researcher employed ordinary least square toexamine the effect of bank announcement and share prices in DFM.However, to achieve the intended objectiveseffectively, the researchutilized Z-Square because this method is very simple. The Z-scoreinvolves the subtraction of the sample mean from the value, anddividing the results by the sample standard deviation. The formulafor calculating the Z-score is
Therefore,for n = 30: p = 0.05, t = 2.05, z = 1.96 p =0.01, t = 2.76, z = 2.58 p = 0.001, t = 3.66, z = 3.3
Fromthis analysis, the researcher rejects null hypothesis thusconcluding that there is no effect of banks announcement and shareprices in the Dubai Financial Market. This is because since theresearcher wanted 99.9% confident, the sample mean and populationmean would have to be twice as far apart in a small (n=6) trial(t=6.87) as in a large trial (z=3.3). However, a medium (n=30) trialwould be just as good (t=3.66).
4.5.The Relation betweenDividends Distributions and Share Prices in DFM
Different statistical approaches and methodologies adopted inprevious literature were employed to test the relationship betweendividends distributions and share prices in DFM. Earlier and currentstudies have attempted to employ multiple regression analysis todetermine the relation between the two variables45.The following hypothesis was tested to determine if the independentvariable (share prices) have a correlation with the dependentvariable (dividends).
H0:There is a statistical correlation between dividends distribution andshare prices in DFM.
H1:There is no statistical correlation between dividends distributionsand share prices in DFM.
In order to achieve the intended research question, “is therestatistical relation between dividends distributions and share pricesin DFM?’ the researcher employed the chi-square to test the aboveformulated hypothesis. The answer to this question was summarized asfollows
No. of Respondents
Theseanswers was then be translated to variables vital for computing theX2 statistic.
Oi – Ei
(Oi – Ei) 2
(Oi – Ei)2/Ei
Usingthe information in the X2 formula one therefore,
X2=(30 – 15)2 / 15+ (5 – 15)2 / 15
Therefore,using the 95%, the confidence level of 0.05 at one degree of freedom,the theoretical chi-square is 4.34. The calculated chi-square of 21.7is greater than 4.34. In this case, the researcher rejects H0(nullhypothesis) that there is no significant correlation between dividenddistributions and share prices in DFM.
4.6. The Relation betweenAssets Size of the Banks and Its Share Prices in DFM
Theresearcher employed variance tests statistic to determine if there isa relation between assets size of the banks and its share prices inDFM. V-R tests process is motivated by the fact that the variance ofa random walk augments linearly with time. The VR technique hasgained popularity for the past decades in research. It has become oneof the standard tool for testing research hypothesis especially inrandom-walk testing. Therefore, to achieve the intended researchhypothesis, the research formulated the following researchhypothesis.
H0:There is a significant relation between assets size of the banks andits share prices in DFM.
H1:There is no significant relation between assets size of the banks andits share prices in DFM.
Therefore,to test the above research hypothesis formulated the researcher usedthe following to calculate the hypothesis.
V R(q) =_2 (q)/2(1) (1)
Where_2 (q) is the dispassionate estimator of 1/q variance of the qthdifference and _2(1) is the variance of the first difference.
However,the study found that V R(q) < 1 thus, the hypothesis was rejectedbecause returns were negatively serially correlated. Therefore,because the reported values of the VR (q) was below 1, the,researcher concluded that assets of the banks does not have anyimpact on its share prices.
5.0. CHAPTER FIVE5.1. Discussions
The statistical analysis revealed that financial data of banks listedwithin DFM has significant effect on the price trends of theirshares. A number of literatures have made significant efforts toinvestigate the impact of interest rates on stock prices in DFM.Kumar and Suresh found that interest rates affects stock pricesthrough two significant channels46.One of them is the impact of discount rate that financial analystsuse to estimate the present value of future cash flows. It isimperative to understand that the discount rate may depend on thebeta coefficient of stock and expected rate of return in the stockmarket. The second channel is direct negative effect on total cost,and this in turn affects cash flows. Most of the factors that mayinfluence the stock prices of financial companies include price ofthe commodities, income level of consumers, price of substituteproducts, an income elasticity of demand, taste of consumers, betacoefficient, and many others.
Despite the escalating interest in investment opportunities inemerging economies, a number of speculators have raised concerningissues about the efficiency of their financial markets47.However, there is a good progress of financial growth thus thegraphs below is an advanced stock chart representing the performanceof DFM. The graph is a snapshot of the DFM that was posted on theBlumberg Business week. This is an indication that the UAE financialmarkets have begun to operate in an efficient manner in order toattract more investors. The market data delays every 15 minutes butthis information is vital for investors who want to invest in theDubai markets. Year after year, DFM has been able to increaserevenues from 148 M AED to 405 M AED48.It has also been able to increase percentage of sales devoted toselling and general costs from 61% to 25%49. This was the driver that led to a bottom line growth of about 36M to185 M AED.
Chart1: Advanced Stock Chart for Dubai Financial Markets
Ndri describes DFM as the leading drivers of the economic growth ofthe state. The author pointed out in the study that financialreporting of the DFM enables investors to make effective investmentdecisions50.In the recent study conducted by Uddin and Mostafa, the authorsrevealed that the established financial information helps investorsto make effective decisions where to invest in a country51.However, the financial announcement has significant impact on theshare prices of the shareholders. Therefore, the research hypothesisemployed varied statistics to test the variables. They stud foundthat interest rates and bank announcement does not have anysignificant correlation to the stock prices, as well as, share pricesrespectively.
6.0. CHAPTER SIX6.1. Conclusion andRecommendations6.1. Conclusion
The main purpose of the research study was to determine if financialdata of banks listed within DFM affect the price trends of theirshares. Financial data is imperative in helping investors to makeeffective investment decisions. DFM has been among the contributingcompanies towards economic growth of UAE thus, understanding therelation of financial data and its impact on the price trend forshareholders is imperative. The study focused on the relationshipbetween bank announcements and share prices in the DFM. It analyzedthe effect of interest rates on stock prices. Therefore, the mainconclusions arise from the objectives and findings of this study. Theresearch findings suggested that there is no significant correlationbetween banks reporting and share prices. Many investors still viewfinancial reporting of a company as an effective technique for makinginvestment decisions. However, many of them fail to understand fullystrategic techniques employed in the financial markets. Therefore,future scholars should conduct further research study to examine theextent to which financial data of banks listed in DFM affect theprice trends of its shares.
There are several limitations affecting validity and reliability ofthis study that should be taken into account seriously. One of themis that data analysis and the techniques employed to test researchhypothesis. The techniques employed to test research question doesnot offer accurate information and this leaves the reader to doubtthe reliability of instrument used. Time is another constraint andsurvey that was based on research methods influenced the accuracy ofthe research findings. These methods could have contributed todeliberate misinterpretations of the research results. Getting thenecessary sample size of the study population was a challenge sincetracking respondents online is not easy. However, there is a need forfuture scholars to conduct further research by using mixed researchtechniques to explore in depth the study component of every person inorder to overcome research limitations.
The significant of the findings of the current research shed thelight on financial reporting and its effect on stock prices.Therefore, it is recommendable for businesses especially financialdata users to take into considerations the extent to which financialdata of companies listed in the DFM affect price trends in thefinancial world. The present study has uncovered the statisticalsignificant of the positive relationship between financial data ofbanks listed within DFM and their effect on the price trends. It istherefore, recommendable for the banking managers in DFM to use thisresearch finding in improving the internal firm management. Thefinancial analysis can also use it in understanding the significantof the financial disclosure, sensitivity, measurement, and financialmanagement. It is recommendable to apprehend and analyze the truevalue of the firms. Using this research study is imperative to thebanking managers because it offers insight into the true drivers ofsustainableperformance in the financial business world.
AlBustani, H. 2014. “Dubai Stock Market Index Declines 4% In SteepestDrop For Three
Weeks”. The National. Accessed on September 28, 2014 fromhttp://www.thenational.ae/business/industry-insights/markets/dubai-stock-market-index-declines-4-in-steepest-drop-for-three-weeks.
Arango,L. E., Gonzalez, A. and Posada, C. E. (2002). Returns and InterestRate: A Nonlinear
Relationship In The Bogota Stock Market. Applied FinancialEconomics, 12(11), 835-842.
Alali,Fatima A., and Paul Sheldon Foote. 2012. "The Value Relevance ofInternational Financial
Reporting Standards: Empirical Evidence in an EmergingMarket." International Journal Of Accounting 47,85-108.
Al-Ajmi,Jasim, and J. H. Kim. 2012. "Are Gulf Stock Markets Efficient?Evidence from new
MultipleVarianceRatio Tests." Applied Economics 44, no. 14:1737-1747.
Al-Hassan,Abdullah, Fernando Delgado, and Mohammed Omran. 2010. "TheUnderpricing of
IPOs in the Gulf Cooperation Council Countries." ResearchIn International Business And Finance 24, 344-360.
Bahlous,Mejda. 2013. "Does Cross-Listing Benefit the Shareholders?Evidence from Companies
in the GCC Countries?." Asia-Pacific FinancialMarkets 20, no. 4: 345.
CBOE.2014. CBOE Holdings Reports August 2014 Trading Volume. The WallStreet Journal.
Accessed on September 26, 2014 fromhttp://online.wsj.com/article/PR-CO-20140902-919830.html.
Cifter,Atilla and Ozun A. 2007. Estimating the Effects of Interest Rates onShare Prices Using
Multi-Scale Causality Test in Emerging Markets: Evidence from Turkey,MPRA Paper,No: 2485, 1-77.
Creswell,J. W. Research Design: Qualitative, Quantitative, and MixedMethod
DFM.2012. Dubai Financial Market, Annual Report 2011, 1-65.
Eggert,Mathias. Compliance Management in Financial Industries: AModel-Based Business
Process and Reporting Perspective. Cham: SpringerInternational Publishing AG, 2014.
Ehrmahh,M. and M. Fratscher. 2004. Taking Stock: Monetary Policy Transmissionto Equity
Markets", Journal of Money, Credit and Banking, 36(4),719-737.
Freixas,Xavier, and Jean-Charles Rochet. Microeconomics of Banking.Cambridge, Mass: MIT
Kumar,S. Anil, and N. Suresh. Operations Management. New Delhi:New Age International,
Lastra,Rosa María, Thomas Cottier, and John Howard Jackson.2012. International Law in
Financial Regulation and Monetary Affairs. Oxford: OxfordUniversity Press, 2012.
Lees,Francis A. Financial Exchanges: A Comparative Approach.New York, NY: Routledge,
Lim,Kian-Ping, and Robert Brooks. 2011. "The Evolution Of StockMarket Efficiency Over
Time: A Survey Of The Empirical Literature." Journal OfEconomic Surveys 25, no. 1: 69-108.
Lees,Francis A. Financial Exchanges: A Comparative Approach.New York, NY: Routledge,
Ndri.Konan Leon. 2008. The Effects of Interest Rates Volatility on StockReturns and
Volatility: Evidence from Korea. International Research Journal ofFinance and Economics, 14, 285-290.
Negro,Marco Del, and Frank Schorfheide. 2013. "Chapter 2: DSGEModel-Based
Forecasting." Handbook Of Economic Forecasting, no.Handbook of Economic Forecasting: 57-140.
Potter,Samuel, Khan Sarmad, and FartahZainab. 2014. “Dubai`s Wild StockMarket Suffers
Another Epic Crash”. Bloomberg BusinessWeek. Accessed onSeptember 28, 2014 fromhttp://www.businessweek.com/articles/2014-07-03/dubais-wild-stock-market-suffers-another-epic-crash.
Ramady,M. A. Political, Economic and Financial Country Risk:Analysis of the Gulf
Cooperation Council. Cham: Springer, 2014.
Ramady,M. A. 2014. Political, Economic and Financial Country Risk:Analysis of the Gulf
CooperationCouncil. Cham: Springer, 2014.
Rao,Ananth. 2005. "Cost frontier Efficiency and Risk-Return Analysisin an Emerging
Market." International Review Of Financial Analysis 14,283-303.
Rigobon,R.,and B.Sacks. 2004. The Impact Of Monetary Policy On Asset Price.Journal of
MonetaryEconomics, 51, 1553-1575.
Squalli,Jay. 2006. "A non-parametric Assessment Of Weak-Form Efficiencyin the UAE
Financial Markets." Applied Financial Economics16,no. 18: 1365-1373.
Taboola.2014. “Dubai Financial Market (DFM: DFM)”, BloombergBusinessWeek. Accessed on
September 26, 2014 from
Thomas,R. M. Blending Qualitative & Quantitative ResearchMethods In Theses And
Dissertations. Thousand Oaks, Calif: Corwin Press. 2013.
Uddin,Md Hamid, and Mostafa Kamal Hassan. 2011. "Corporate RiskInformation In Annual
Reports And Stock Price Behavior in the United ArabEmirates." Academy Of Accounting and Financial StudiesJournal no. 1 SI: 59.
Wetherby,Allison S. The Stock Market: Crisis, Recovery and EmergingEconomies. Hauppauge,
N.Y.: Nova Science Publisher`s, 2011.
Wilkins,Janet P., and Barbara L. Campos. The Financial Crisis: Issuesin Business,
Finance and Global Economics. Hauppauge, N.Y.: Nova SciencePublisher, 2011.
I ama student of university carrying out a researchanalysis for the financial data of banks listed on Dubai financialmarket and their effect on its stock prices. This research andanalysis project is meant for academic purposes and the informationthat will be collected will be strictly confidential.
18-23/23-28 / 28-33/33-38/38+
Is there statistical relation between dividends distributions and share prices in DFM?
How does the financial data of banks listed on DFM affect the price trends of their shares?
How will you rate the entire banking exercise and the price trends of the DFM shares in the banking industry?
(Good, very good, average, excellent or bad)
What is the impact of interest rates on stock prices in the Dubai Financial Market?
Is the state of economy linked to the current financial crisis in the banking sector? If so does, it have any effect on the financial reporting of the DFM?
Do you think interest rates is the major impact of stock prices in the Dubai financial market?
a). If so, to what extent has this impacted the stock prices in theDFM.
b) Are there any other factors that have impacted the stock prices inthe DFM apart from stock prices?
What is the effect of banks announcement and share prices in the Dubai Financial Market?
Does all DFM comply with the central bank policy and this have any effect on financial reporting? Yes/No
Do you think financial reporting is vital in helping investors to make decision of investing in a particular bank?
Is there relationship between dividends distributions and share prices in DFM?
What is the relation between assets size of the banks and its share prices in DFM?
Table1: Table Indicating Listed Banking Companies in the Dubai FinancialMarket
Al Salam Bank (Bahrain)
Al Salam Bank (Sudan)
Commercial Bank of Dubai
Dubai Islamic Bank
Emirate Islamic Bank
Emirates Investment Bank
Emirates Investment Bank
Gulf Finance House
1Wilkins, Janet P., and Barbara L. Campos. The Financial Crisis: Issues in Business, Finance and Global Economics. Hauppauge, N.Y.: Nova Science Publisher, 2011, P. 56.
2 Lees, Francis A. Financial Exchanges: A Comparative Approach. New York, NY: Routledge, 2011.
3 DFM. 2012. Dubai Financial Market, Annual Report 2011, 1-65.
4 Ibid, 2012, p. 5.
5 Al-Ajmi, Jasim, and J. H. Kim. 2012. "Are Gulf Stock Markets Efficient? Evidence from new
Multiple Variance Ratio Tests." Applied Economics 44, no. 14: 1737-1747.
6Al-Ajmi and Kim. Are Gulf Stock Markets Efficient? Evidence from new
Multiple Variance Ratio Tests, 2012, p. 1739.
7Lastra, Thomas and John. International Law in Financial Regulation and Monetary Affairs, 2012, p. 67.
8Ramady, M. A. 2014. Political, Economic and Financial Country Risk: Analysis of the Gulf Cooperation Council. Cham: Springer, 2014.
9 Ibid, 2014, p. 58.
10Uddin, Hamid, and Mostafa. "Corporate Risk Information in Annual Reports and Stock Price Behavior in the United Arab Emirates, 2011, p. 59.
11Cifter, Atilla and Ozun A. 2007. Estimating the Effects of Interest Rates on Share Prices Using Multi-Scale Causality Test in Emerging Markets: Evidence from Turkey, MPRA Paper,No: 2485, 1-77.
12 Ibid, 2007. P. 56.
13Rigobon,R., and B.Sacks. 2004. The Impact Of Monetary Policy On Asset Price. Journal of Monetary Economics, 51, 1553-1575.
14 Ibid, 2004. P. 57.
15 Al-Hassan, Fernando, and Mohammed, The underpricing of IPOs in the Gulf cooperation council countries, 2010, P. 347.
16Bahlous, Mejda. 2013. "Does Cross-Listing Benefit the Shareholders? Evidence from Companies in the GCC Countries?." Asia-Pacific Financial Markets 20, no. 4: 345.
Ibid, 2013, p. 345.
17Lim, Kian-Ping, and Robert Brooks. 2011. "The Evolution Of Stock Market Efficiency Over
Time: A Survey Of The Empirical Literature." Journal Of Economic Surveys 25, no. 1: 69-108.
18Lim and Robert. The Evolution of Stock Market Efficiency Over Time, 2011, p. 72.
19 Lees, Francis A. Financial Exchanges: A Comparative Approach. New York, NY: Routledge, 2011.
20Squalli, A non-parametric Assessment of Weak-Form Efficiency in the UAE Financial Markets, p. 1369.
21 Ibid, 2011, p. 73.
22Ndri. Konan Leon. 2008. The Effects of Interest Rates Volatility on Stock Returns and
Volatility: Evidence from Korea. International Research Journal of Finance and Economics, 14, 285-290.
23 Ibid, p. 287.
24Wetherby. The Stock Market, 2011, P. 77.
25 Ibid, 2011, p.77.
26Eggert, Mathias. Compliance Management in Financial Industries: A Model-Based Business Process and Reporting Perspective. Cham: Springer International Publishing AG, 2014.
27Alali, and Paul."The Value Relevance of International Financial Reporting Standards, 2012. p.91.
28 Al Bustani. Dubai Stock Market Index Declines 4% In Steepest Drop for Three Weeks, 2014, para. 1.
29 Ibid, 2014, para. 2.
30 Potter, Khan and Fartah, Dubai`s Wild Stock Market Suffers another Epic Crash, 2014. Para. 7.
31Arango, L. E., Gonzalez, A. and Posada, C. E. (2002). Returns and Interest Rate: A Nonlinear Relationship in The Bogota Stock Market. Applied Financial Economics, 12(11), 835-842.
32Ehrmahh, M. and M. Fratscher. 2004. Taking Stock: Monetary Policy Transmission to Equity
Markets", Journal of Money, Credit and Banking, 36(4), 719-737.
33Arango, L. E., Gonzalez, A. and Posada, C. E. (2002). Returns and interest rate: A nonlinear relationship in the Bogota stock market. Applied Financial Economics, 12(11), 835-842.
34 Thomas, R. M. Blending Qualitative & Quantitative Research Methods In Theses And
Dissertations. Thousand Oaks, Calif: Corwin Press. 2003.
35 Creswell, J. W. Research Design: Qualitative, Quantitative, and Mixed Method Approaches. 2013.
36Negro, Marco Del, and Frank Schorfheide. 2013. "Chapter 2: DSGE Model-Based Forecasting." Handbook Of Economic Forecasting, no. Handbook of Economic Forecasting: 57-140.
37Ramady, M. A. Political, Economic and Financial Country Risk: Analysis of the Gulf Cooperation Council. Cham: Springer, 2014.
38 Creswell, Research Design, 2013, p, 35.
39 Ibid, 2013, p. 36.
40 Rao, Ananth. 2005. "Cost frontier Efficiency and Risk-Return Analysis in an Emerging Market." International Review of Financial Analysis 14, 283-303.
41Freixas, Xavier, and Jean-Charles Rochet. Microeconomics of Banking. Cambridge, Mass: MIT Press, 2008.
42 CBOE. 2014. CBOE Holdings Reports August 2014 Trading Volume. The Wall Street Journal.Accessed on September from http://online.wsj.com/article/PR-CO-20140902-919830.html.
43 Al-Ajmi, Jasim, and J. H. Kim. 2012. "Are Gulf Stock Markets Efficient? Evidence from new Multiple Variance Ratio Tests." Applied Economics 44, no. 14: 1737-1747.
44 Kumar, S. Anil, and N. Suresh. Operations Management. New Delhi: New Age International,
45 Al-Ajmi, Jasim, and J. H. Kim. 2012. "Are Gulf Stock Markets Efficient? Evidence from new Multiple Variance Ratio Tests." Applied Economics 44, no. 14: 1737-1747.
46Kumar, S. Anil, and N. Suresh. Operations Management. New Delhi: New Age International, 2009.
47Squalli, Jay. 2006. "A non-parametric Assessment Of Weak-Form Efficiency in the UAE financial markets." Applied Financial Economics16, no. 18: 1365-1373.
48Taboola. “Dubai Financial Market (DFM: DFM)”, Bloomberg BusinessWeek. Accessed on September 26, 2014 from
49 Ibid, 2014.
50Ndri. Konan Leon. 2008. The Effects of Interest Rates Volatility on Stock Returns and Volatility: Evidence from Korea. International Research Journal of Finance and Economics, 14, 285-290
51 Uddin, Md Hamid, and Mostafa Kamal Hassan. 2011. "Corporate Risk Information In Annual
Reports and Stock Price Behavior in the United Arab Emirates." Academy Of Accounting and Financial Studies Journal no. 1 SI: 59.