The Impact of Different Financial Variables on the Privatization of the Kuwaiti Stock Market
Abstract
The main goal of this research is to examine if there have been any notable changes in the trading actives of the Kuwait stock Exchange (KSE) after the privatization process that took place on the 25th of April 2016. The data that are used to test if there is any change in the Kuwait financial market performance are the daily indices for the period from the 15th of June 2014 till 21 of April 2016 (before privatization) and a similar period after the date of the privatization from the 24 of April 2016 till the 29 May 2019. The research outcomes indicate a lower variability of most of the variables that are associated with the privatization. However, that the observed switch in slope direction is not actually a product of privatization, but rather one of serial correlation. In addition, there is no evidence to show that privatization has, as of yet, affected the average closing price of assets listed on the Kuwait Stock Exchange.
