| Author(s) | Nabeel E. AI-Loughani |
| Affiliation | Department of Finance and Financial Institutions, College of Adminsifrative Sciences, Kuwait University, P.G. Box 5486, Safat 13055, Kuwait |
| Title | The Performance of Small Firm and Large Firm Stocks in the Kuwait Stock Exchange |
| Source | Journal of King Saud University. Administrative Sciences. Volume 14, No 2. (2002/1422) |
| Abstract | This paper examines the empirical relationship between the return and the total market value of Kuwaiti listed companies. Using the market model to estimate the returns of the global small-cap and larg-cap indexes, this study finds that smaller firms have had higher risk adjusted returns, on average, than larger firms. These results suggest that wither the capital asset pricing model (CAPM) does not accurately describe the Kuwaiti stock market or the Kuwaiti market is inefficient. The evidence documented in the literature, however, points to the likelihood that this anomaly is being generated by market inefficiency. |
