Country Effects, Industry Effects and the Effectiveness of International Diversification Within the GCC Region-Reference-Cited by-同舟云学术

Country Effects, Industry Effects and the Effectiveness of International Diversification Within the GCC Region

Published:2019-12 Issue:04 Volume:22 Page:1950028
ISSN:0219-0915
Container-title:Review of Pacific Basin Financial Markets and Policies
language:en
Short-container-title:Rev. Pac. Basin Finan. Mark. Pol.

Author:

Al-Jassar Sulaiman¹^ORCID,Moosa Imad A.²

Affiliation:

1. Department of Finance and Financial Institutions, Kuwait University, Kuwait

2. School of Economics, Finance and Marketing, RMIT, 445 Swanston Street, Melbourne, Victoria 3000, Australia

Abstract

A hedging approach is used to examine the effectiveness of international diversification within the Gulf Co-operation Council (GCC) region. By using data covering the six GCC countries (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and UAE) and various sectors, we find that diversification across whole markets is more effective than diversification across sectors, irrespective of whether the constructed portfolios contain two or more assets. The results also reveal that diversification among several markets or sectors is more effective than diversification among two markets or sectors.

Funder

Kuwait University

Publisher

World Scientific Pub Co Pte Lt

Subject

Economics and Econometrics,Finance

Link

https://www.worldscientific.com/doi/pdf/10.1142/S0219091519500280

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