Weak Form Efficiency of the Insurance Industry: Empirical Evidence from Nigeria
<p>This paper evaluated the insurance sector of Nigeria Stock Exchange (NSE) for evidence weak-form efficiency using daily returns from January 2009 to February 2016. The study employs descriptive analysis, non-parametric runs test and autocorrelation function as well as Ljung-Box Q statistics...
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| Format: | Article |
| Language: | English |
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Universitas Merdeka Malang
2018-02-01
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| Series: | Jurnal Keuangan dan Perbankan |
| Subjects: | |
| Online Access: | http://jurnal.unmer.ac.id/index.php/jkdp/article/view/1800 |
| _version_ | 1811283934173986816 |
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| author | Emenike Kalu Onwukwe Peter Ifeanyichukwu Ali |
| author_facet | Emenike Kalu Onwukwe Peter Ifeanyichukwu Ali |
| author_sort | Emenike Kalu Onwukwe |
| collection | DOAJ |
| description | <p>This paper evaluated the insurance sector of Nigeria Stock Exchange (NSE) for evidence weak-form efficiency using daily returns from January 2009 to February 2016. The study employs descriptive analysis, non-parametric runs test and autocorrelation function as well as Ljung-Box Q statistics in conducting the evaluation. Descriptive statistics of the insurance sector return series showed negative skewness and leptokurtic distribution. Estimates from the Jarque-Bera normality test showed that the insurance sector returns did not follow normal distribution. Results of the runs test reject null hypothesis of randomness in the return series of the insurance sector in the period studied. Furthermore, the autocorrelation functions and the Ljung-Box Q tests provide evidence of serial correlation in the stock returns of the insurance sector. Overall results from the study suggested that the insurance sector of NSE is not weak-form efficient. Consequently, technical analysis on the insurance sector of the NSE may not be fruitless.<strong></strong></p><br /> |
| first_indexed | 2024-04-13T02:21:00Z |
| format | Article |
| id | doaj.art-41314e42fff344e2abb30227a76a1392 |
| institution | Directory Open Access Journal |
| issn | 1410-8089 2443-2687 |
| language | English |
| last_indexed | 2024-04-13T02:21:00Z |
| publishDate | 2018-02-01 |
| publisher | Universitas Merdeka Malang |
| record_format | Article |
| series | Jurnal Keuangan dan Perbankan |
| spelling | doaj.art-41314e42fff344e2abb30227a76a13922022-12-22T03:06:58ZengUniversitas Merdeka MalangJurnal Keuangan dan Perbankan1410-80892443-26872018-02-01221142210.26905/jkdp.v22i1.18001264Weak Form Efficiency of the Insurance Industry: Empirical Evidence from NigeriaEmenike Kalu Onwukwe0Peter Ifeanyichukwu Ali1Department of Accounting and Finance, Kampala International University, P.M.B. 20000, Kampala - UgandaDepartment of Financial Management Technology Federal University of Technology P.M.B. 1526, Owerri - Nigeria<p>This paper evaluated the insurance sector of Nigeria Stock Exchange (NSE) for evidence weak-form efficiency using daily returns from January 2009 to February 2016. The study employs descriptive analysis, non-parametric runs test and autocorrelation function as well as Ljung-Box Q statistics in conducting the evaluation. Descriptive statistics of the insurance sector return series showed negative skewness and leptokurtic distribution. Estimates from the Jarque-Bera normality test showed that the insurance sector returns did not follow normal distribution. Results of the runs test reject null hypothesis of randomness in the return series of the insurance sector in the period studied. Furthermore, the autocorrelation functions and the Ljung-Box Q tests provide evidence of serial correlation in the stock returns of the insurance sector. Overall results from the study suggested that the insurance sector of NSE is not weak-form efficient. Consequently, technical analysis on the insurance sector of the NSE may not be fruitless.<strong></strong></p><br />http://jurnal.unmer.ac.id/index.php/jkdp/article/view/1800Efficient Market HypothesisInsurance SectorNigeria Stock ExchangeWeak-Form Efficiency |
| spellingShingle | Emenike Kalu Onwukwe Peter Ifeanyichukwu Ali Weak Form Efficiency of the Insurance Industry: Empirical Evidence from Nigeria Jurnal Keuangan dan Perbankan Efficient Market Hypothesis Insurance Sector Nigeria Stock Exchange Weak-Form Efficiency |
| title | Weak Form Efficiency of the Insurance Industry: Empirical Evidence from Nigeria |
| title_full | Weak Form Efficiency of the Insurance Industry: Empirical Evidence from Nigeria |
| title_fullStr | Weak Form Efficiency of the Insurance Industry: Empirical Evidence from Nigeria |
| title_full_unstemmed | Weak Form Efficiency of the Insurance Industry: Empirical Evidence from Nigeria |
| title_short | Weak Form Efficiency of the Insurance Industry: Empirical Evidence from Nigeria |
| title_sort | weak form efficiency of the insurance industry empirical evidence from nigeria |
| topic | Efficient Market Hypothesis Insurance Sector Nigeria Stock Exchange Weak-Form Efficiency |
| url | http://jurnal.unmer.ac.id/index.php/jkdp/article/view/1800 |
| work_keys_str_mv | AT emenikekaluonwukwe weakformefficiencyoftheinsuranceindustryempiricalevidencefromnigeria AT peterifeanyichukwuali weakformefficiencyoftheinsuranceindustryempiricalevidencefromnigeria |