A Test of Weak Form Efficiency for the Botswana Stock Exchange (2004- 2008)
Oscar Chiwira, Brian Muyambiri
Journal of Economics, Management and Trade · pp. 83–91 · Published 19 Mar 2012
10.9734/BJEMT/2012/1071Abstract
Aim: This study aims to evaluate the presence of weak form efficiency in the Botswana Stock Exchange (BSE) using a number of methods that specifically assess the Random Walk Model. Study Design: Multi-model econometric study. Place and Duration of Study: Botswana, Gaborone, between December 2011 and January 2012. Methodology: The study uses a number of tests to examine the randomness of the BSE stock prices. The testing methods used are the Augmented Dickey Fuller tests, autocorrelation test, Kolmogorov-Smirnov Test, Runs Test and the Phillips Perron unit root test. The methodology was adopted because it mixed both parametric and nonparametric tests. All the tests are investigated on weekly and monthly All Company Index (ACI) data for the period 2004 to 2008. Results: All the tests show that the BSE is inefficient at the weak-form and that there is need for a number of adjustments to improve its efficiency. Conclusion: The random Walk hypothesis is rejected implying that experienced investment analysts have an advantage of outperforming the market and hence make higher than expected profits through the use of historical data.
Cited by 21
Zeravan Abdulmuhsen Asaad, Bayar Omer · Journal of Enterprise and Development · 2024
Saint Kuttu, J. Abor, Godfred Amewu · Journal of economics and finance · 2024
Y. Dhungana · PRAGYAN A Peer Reviewed Multidisciplinary Journal · 2021
Negar Fazlollahi, Nesrin Ozatac, K. Gokmenoglu · Environmental science and pollution research international · 2020
D. D. de Villiers, Natalya Apopo, A. Phiri · Cogent Economics & Finance · 2020
Strike Mbulawa, Francis Ogbenna · Jurnal Perspektif Pembiayaan dan Pembangunan Daerah · 2019
Musarrat Shamshir, M. J. Baig, K. Mustafa · 2018
Gofaone Matebejana, G. Motlaleng, J. Juana · 2017
Ö. Yücel · 2016
Ishmael Radikoko · 2014
Related research
- The Impact of Solar Flares and Cosmic Rays on Atmospheric Decay — shares topic coverage
Article metrics
Real usage data collected on this platform.
0
Page views
0
PDF downloads
0
Outbound clicks
21
Citations
Views by country
Approximate, from request IP at view time — not citizenship or institution. Countries with fewer than 5 views are grouped as "Other".
No views recorded yet.
Traffic sources
Referring site, by host.
No traffic recorded yet.
Views and downloads exclude known bots/crawlers. Citations combines this platform's own DOI-resolved index with each external source's own reported total — see Cited by above for individually listed citing works. Last refreshed 0 seconds ago.