<p>This study tests the validity of the weak-form EMH on the Canadian TSX equity market using seven TSX daily index returns. Quantitatively, a variety of statistical tests is used to test for the randomness of return series. Results of the common statistical (i.e., the autocorrelation, the BG, the runs) tests all suggest that returns are serially correlated, except returns on the TSX 60 capped index. After rejecting the RWM of TSX indices using univariate unit root (i.e., ADF, PP, KPSS), we proceed to test for the possibility of nonlinear dynamic patterns present in return series. BDS results reject an IID underlying residual series after fitting AR(2) to TSX daily index returns, indicating that a deterministic chaotic process describes the data well. This finding of a temporal dependency is supported also by results of the R/S analysis, which indicates that all TSX index returns possess long-memory properties of an anti-persistent trend-reversing behaviour with two indices showing stronger degree of anti-correlation and five indices showing weaker degree of anti-correlation. Overall, results uniformly reject the RWM governing TSX equity index returns, implying that the Canadian equity market is weak-form inefficient.</p>
The co-operative sector plays an important role in a country's socio-economic development. This paper evaluated the financial performance of 9 selected Savings and Credit Co-operative Societies (SACCOSs) in Botswana by analysing audited financial statements of a five-year period from 2008 to 2012. The analytical techniques used include descriptive statistics of financial aggregates and ratios, correlation, regression and common size analyses. The financial aggregates analysed included all items that impact income generation as well as items that represent the financial position of the selected societies. The findings underscored that the selected SACCOSs achieved good financial results and were in strong financial position. The results also indicated a significant relationship between Net Profit ratio and Capital Employed Ratio to inform that the Net Profit Ratio was the most important explainer of Return on Capital Employed. The 5 year common size analysis also revealed a growth in income and in the financial status of the selected societies. The capital structure of these societies was characterised by substantial share of internal funds. Conclusively, maintaining an optimal balance between the interest on loans and interest on members' savings, and investing extra cash in diversified portfolio to reduce the risk levels would make the SACCOSs grow and function more productively and profitably. They would also then succeed in attracting more members and thereby significantly contribute towards poverty reduction and economic diversification drives in the country.
This paper examines the efficiency of Botswana's capital market by testing the presence of random walk (RW) behavior in the Domestic
This study examines the impacts of the stock market development on economic growth using Botswana as a case study. The study uses times series data covering a decade from 2006 to 2016. The method of analysis used is the Auto regressive distributed lag (ARDL) bounds model. The stock market capitalization ratio (MCR) was used as a proxy for market size while value of shares traded ratio (ST) and Turnover ratio (TR) were used as a proxy for liquidity, collectively representing stock market development. Real gross domestic product (GDP) growth rate was used to represent economic growth .The results show that market capitalization and turnover ratio have a negative correlation with economic growth, while the value of shares traded has a strong positive correlation with economic growth. This result implies that liquidity has propensity to stimulate economic growth in Botswana. The results of this study also found that there exists no causality relationship between stock market development and economic growth. The government should make policies that boost the interest of domestic investors in Botswana as this might spur investors' interest and boost stock market activity which will improve liquidity and therefore stimulate economic growth.
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