Australian interest rate volatility is modelled to examine the effect of quarterly inflation rate announcements on interest rate volatility. The data used in this empirical analysis consists of the daily closing rates for 90 day Australian treasury bills from 3 July 1985 to 31 December 1993....

This paper models dynamic correlations between the Asian stock market returns and studies their behaviour over the period before, during and after the Asian financial crisis, which occurred in the 1990s. To establish the presence of contagion effect, this paper investigates whether or not there...

The exchange rate of the Kuwaiti dinar against the Japanese yen is modelled in terms of the activities of fundamentalists and technicians as well as the effect of the exchange rate arrangement. The results show that market forces, as represented by the activities of traders, play a role in the...

This paper examines the role of spot and forward speculation in determining the forward exchange rate. The evidence reveals that neither spot nor forward speculation plays any role in determining the forward exchange rate in three currency combinations, lending support to covered interest...

Extreme Bounds Analysis (EBA) is used to identify the determinants of capital structure in a tax-free environment, using data on Kuwaiti shareholding companies. The results which are more supportive of the pecking order theory than the trade-off theory, show some evidence for the importance of...

We demonstrate, using Extreme Bounds Analysis (EBA), that some of the firm-specific determinants of the capital structure of Chinese firms reported as important in previous studies may be fragile, in the sense that the sign and/or significance of the coefficients on these variables change...

This paper examines the viability of using short-term interest rates to forecast inflation as implied by the Fisher hypothesis. A major problem with this approach is the implicit assumption that the real interest rate is constant and that the relationship between inflation and interest rate does...

This study investigates the nature of seasonality in the monthly stock returns derived from a general index of the Kuwait Stock Exchange. A structural time series model incorporating stochastic dummies reveals that seasonality is present but it is deterministic as implied by the constancy of the...

The performance of three strategies of hedging exposure to foreign exchange risk are evaluated in terms of the ability to optimize the domestic currency value of the exposure. The results, based on data covering the exchange rates of three currencies against the US dollar, reveal that hedging or...

A news model of stock price determination is specified and estimated using the Kuwait Stock Exchange (KSE) index as the price variable over the period January 1996 to December 2004. Of the five explanatory news variables, only the news terms of the money supply and government revenue turned out...