Emerging Markets: Evaluating Graham's Stock Selection Criteria on Portfolio Return in Saudi Arabia Stock Market

Nadisah Zakaria and Fariza Hashim
Additional contact information
Nadisah Zakaria: Prince Sultan University, Riyadh, Kingdom of Saudi Arabia,
Fariza Hashim: Prince Sultan University, Riyadh, Kingdom of Saudi Arabia

International Journal of Economics and Financial Issues, 2017, vol. 7, issue 2, 453-459

Abstract: Graham's stock selection criteria enable investors to be more cautious in selecting their portfolios in order to generate abnormal return. Graham's model was widely examined in various developed market where the stock markets and companies are more mature and economy of the countries are more stable. However, the selection criteria model was not commonly examined in emerging countries despite of their rapid economic growth and diversified sectors in the stocks trading. Hence, this study attempts to investigate the relevance of Graham's stock selection criteria on the portfolio returns of the Saudi Arabia stock market. Saudi Arabia represents the fastest growing market in the Middle East primarily Arabian Gulf Cooperation Council region thus testing the market is justified. The study found that despite of being young and immature stock market, Saudi stock market was able to offer abnormal return to the investors and Graham's model of stock selection is indeed valuable to investors.

Keywords: Net Current Asset Value; Benjamin Graham; Value nvesting (search for similar items in EconPapers)
JEL-codes: G14 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.econjournals.com/index.php/ijefi/article/download/4180/pdf (application/pdf)
http://www.econjournals.com/index.php/ijefi/article/view/4180/pdf (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eco:journ1:2017-02-59

Access Statistics for this article

International Journal of Economics and Financial Issues is currently edited by Ilhan Ozturk

More articles in International Journal of Economics and Financial Issues from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk ().