Market efficiency and technical analysis during different market phases: further evidence from Malaysia
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Author(s)Safwan Mohd NorLink to ORCID Index: https://orcid.org/0000-0003-0791-2363
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Guneratne WickremasingheLink to ORCID Index: https://orcid.org/0000-0001-6946-0660
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DOIhttp://dx.doi.org/10.21511/imfi.14(2-2).2017.07
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Article InfoVolume 14 2017, Issue #2 (cont. 2), pp. 359-366
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The profitability of simple technical trading rules remains an interesting topic and has been thoroughly explored in the literature. In this paper, the authors investigate the profitability of two popular moving average (MA) rules in the Bursa Malaysia before, during and after the global financial crisis (GFC) of 2008-2009. Using variable length MA (VMA) and fixed length MA (FMA) technical rules, the authors explore if there were differences in their performance during the different market phases, and if swing traders can gain by trading on the basis of these strategies. When practical trading constraints are considered, the authors find that MA rules performed differently during the three market phases. Over time, the forecasting powers of these rules have diluted and they have performed poorly in the most recent subsample. The findings suggest that the Malaysian stock market is gradually becoming more efficient. This outcome can be attributed to the technological advancements and widespread use of exchange traded funds.
- Keywords
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JEL Classification (Paper profile tab)G11, G14, G17
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References26
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Tables3
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Figures0
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- Table 1. VMA and FMA trading performance before the global financial crisis (2005–2007)
- Table 2. VMA and FMA trading performance during the global financial crisis (2008–2009)
- Table 3. VMA and FMA trading performance after the global financial crisis (2010–2013)
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Fund performance-flow relationship and the role of institutional reform
Jinyu Feng ,
Wenzhao Wang
doi: http://dx.doi.org/10.21511/imfi.15(1).2018.26
Investment Management and Financial Innovations Volume 15, 2018 Issue #1 pp. 311-327 Views: 1860 Downloads: 211 TO CITE АНОТАЦІЯExtant literature shows the positive impact of institutional development on investor rationality and market efficiency. The authors extend this evidence by investigating the performance-flow relationship in the Chinese mutual fund market before and after the enforcement of the revised Law of the People’s Republic of China on Securities Investment Fund. Empirical evidence reveals that Chinese investors irrationally chase past star performers before institutional reform, but gradually become rational and less obsessed with star-chasing behaviors after reform. Moving one percentile upward in the relative performance among the star funds is associated with money inflows by 0.532% after reform, much lower than 1.433% before reform. The findings confirm the positive influence of institutional development on investor rationality and market efficiency. The successful experience can be borrowed by other emerging markets with less developed institutions.
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The impact of foreign ownership on corporate governance: evidence from an emerging market
Rawan Shubita , Moade Fawzi Shubita
doi: http://dx.doi.org/10.21511/imfi.16(2).2019.09
Investment Management and Financial Innovations Volume 16, 2019 Issue #2 pp. 101-115 Views: 1857 Downloads: 266 TO CITE АНОТАЦІЯThis research explores the influence of foreign ownership on non-financial public shareholding firms in the Amman Stock Exchange (ASE). The study involved an investigation into the connection between non-Jordanian ownership and the company growth opportunity, stock liquidity, leverage, dividend policy and business output. The results highlight that foreign ownership can provide improved corporate governance practices by playing a decisive role in increasing the growth opportunity and enhancing the firms’ market valuation, as measured by Tobin’s Q. Moreover, the findings indicate that companies with foreign board membership have better operating performance and higher firm value. The rewards were reaped by foreign investors based on their superior monitoring ability, which affects the decisions made and actions taken by management.
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New market reforms and stock exchange liquidity: the case of Kuwait
Amani kh. Bouresli ,
Fayez A. Abdulsalam
doi: http://dx.doi.org/10.21511/imfi.16(1).2019.04
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