A note on value investing in the UAE stock market
Journal Title: Journal of Research in Emerging Markets - Year 2019, Vol 1, Issue 2
Abstract
Value investing is one of the most popular stock-picking strategies employed in financial markets. We investigate its effectiveness in the United Arab Emirates. We examine the performance of 124 firms in the period from January 2004 to March 2019. We analyze portfolios from one-way sorts on several well-known valuation ratios: earnings-to-price, book-to-market, EBITDA-to-EV, and dividend yield. Our results demonstrate a powerful value effect in the UAE stock markets. The long-short strategies based on valuation ratios display high raw and risk-adjusted returns. Our results are robust to many considerations.
Authors and Affiliations
Mateusz Mikutowski, George Kambouris, Adam Zaremba
Keywords
Related Articles
- EP ID EP595373
- DOI 10.30585/jrems.v1i2.339
- Views 93
- Downloads 0
The (lack of) momentum effect in the UAE stock market
We investigate the momentum effect in the United Arab Emirates equity returns. Using a dataset of 124 firms listed in the UAE stock markets in the period January 2004 – March 2019, we form portfolios from one-way sorts o...
Let’s make dissertations masterly again!A study onimproving the experience and results of the post-graduate final projectin the UAE
This paper aims to enhance the supervision-level of post-graduate dissertations in a Middle East Branch Campus of a Transnational Higher Education Institution (HEI). For a number of years, the proposal stage of the disse...
Examining the Effectiveness of Neuro-Linguistic Programming (NLP) techniques in improving Emotional Intelligence (EI) scores
Purpose – Whether selected NLP techniques can improve EI scores. (Although there are many self-development training courses advertised on the internet claiming to be able to improve EI, yet no credible research has been...
Training needs of businesses in the retail industry: A business case in the United Arab Emirates
People in the organization are said to be an important asset. They need to be equipped with the needed skills to contribute to become abreast with the latest trends and demands in the industry. This research focused on a...
Fair Disclosure of Inside Information by Listed Companies: A comparative study between the UK and Kuwait
In Kuwait, the Capital Markets Act 2010 (the Act) gives the regulatory authority the power to pass disclosure rules. However, the Act does not mention how to improve such disclosure rules. Therefore, this article will di...