THE CHANGING EFFICIENCY OF AFRICAN STOCK MARKETS

This paper classifies formal African stock markets into four categories and discuses the principal characteristics of the seven markets covered in this study: South Africa, Egypt, Morocco, Nigeria, Zimbabwe, Mauritius and Kenya. Using a GARCH approach with time‐varying parameters, a test of evolving efficiency (TEE) is implemented for periods starting in the early 1990s and ending in June 2001. This test detects changes in weak form efficiency through time. The TEE finds that the Johannesburg stock market is weak form efficient throughout the period, and three stock markets become weak form efficient towards the end of the period: Egypt and Morocco from 1999 and Nigeria from early 2001. These contrast with the Kenya and Zimbabwe stock markets which show no tendency towards weak form efficiency and the Mauritius market which displays a slow tendency to eliminate inefficiency. The paper relates weak form efficiency to stock market turnover, capitalisation and institutional characteristics of markets.     

Winning in Small Claims Courts: An Empirical Analysis

Small claims courts provide consumers with a potentially effective method for complaint resolution. Little is known, however, about the factors which influence the probability of consumers winning their cases in court or of successfully settling their cases out of court. This study estimated these probabilities using 1975–76 data from the Syracuse, New York Small Claims Court. A major goal of the research was to determine if plaintiffs' demographic characteristics, the amount and type of advice sought by plaintiffs and the specific characteristics of the cases differentially affected the probability of successful consumer outcomes. Major findings were that economic variables such as the amount of the claim and the amount offered by way of settlement of the claim primarily determined the probability of settling out of court. Neither sex nor race had any impact on the probability of winning in court. Advice from the small claims court staff and from lawyers both were found to lower the probability that the consumer would win in court. The results point to the need for more empirical analyses of small claims court cases and may aid educators in advising consumers on the use of the institution and policy makers concerned with court reform.