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Journal articles on the topic 'Efficient market theory'

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Published: 4 June 2021
Last updated: 25 July 2025

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1

Jahnke, William W. "Requiem for Efficient Market Theory." Journal of Investing 3, no. 2 (1994): 5–9. http://dx.doi.org/10.3905/joi.3.2.5.

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2

Zhu, Ziyan. "The Impact of Investor Expectation on the Financial Decision-Making." Highlights in Business, Economics and Management 34 (June 10, 2024): 102–7. http://dx.doi.org/10.54097/nf8m2446.

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This paper delves into a fundamental analysis of two significant standards in budgetary financial matters: efficient market hypothesis and behavioral finance. The efficient market hypothesis posits that financial markets efficiently process all available information, leading market participants to make rational decisions. This theory underscores the accuracy of market predictions and the efficiency of information processing. In contrast, behavioral finance challenges the efficient markets theory by revealing various cognitive biases and irrational behaviors that influence financial decisions,
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3

Hodnett, Kathleen, and Heng-Hsing Hsieh. "Capital Market Theories: Market Efficiency Versus Investor Prospects." International Business & Economics Research Journal (IBER) 11, no. 8 (2012): 849. http://dx.doi.org/10.19030/iber.v11i8.7163.

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This paper reviews the development of capital market theories based on the assumption of capital market efficiency, which includes the efficient market hypothesis (EMH), modern portfolio theory (MPT), the capital asset pricing model (CAPM), the implications of MPT in asset allocation decisions, criticisms regarding the market portfolio and the development of the arbitrage pricing theory (APT). An alternative school of thought proposes that investors are irrational and that their trading behaviors are driven by psychological biases such as greed and fear. Prospect theory and the role of behavio
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4

Mathivannan, S., and M. Selvakumar. "Test of Random Walk Theory in the National Stock Exchange." Asian Journal of Managerial Science 4, no. 2 (2015): 21–25. http://dx.doi.org/10.51983/ajms-2015.4.2.1193.

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Capital market being a vital institution which facilitates economic development. It is true that so many parties are interested in knowing the efficiency of the capital market. The small and medium investors can be motivated to save and invest in the capital market only if their securities in the market are appropriately priced. The information content of events and its disseminations determine the efficiency of the capital market. That is, how quickly and correctly security prices reflect these information show the efficiency of the capital market.The term market efficiency is used to explain
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5

GULKO, LES. "THE ENTROPIC MARKET HYPOTHESIS." International Journal of Theoretical and Applied Finance 02, no. 03 (1999): 293–329. http://dx.doi.org/10.1142/s0219024999000170.

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Information theory teaches that entropy is the fundamental limit for data compression, and electrical engineers routinely use entropy as a criterion for efficient storage and transmission of information. Since modern financial theory teaches that competitive market prices store and transmit information with some efficiency, should financial economists be concerned with entropy? This paper presents a market model in which entropy emerges endogenously as a condition for the operational efficiency of price discovery while entropy maximization emerges as a condition for the informational efficienc
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6

Zhou, Yijia. "Market Efficiency in the UK Emerging Financial Markets." Advances in Economics, Management and Political Sciences 19, no. 1 (2023): 366–71. http://dx.doi.org/10.54254/2754-1169/19/20230161.

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The UK financial market system is huge, more clearly divided and more functional. Under the impact of the world financial innovation trend and the increasing competition in the international financial market, the UK financial market has made quite bold financial innovations. The internationalization trend of the UK's emerging financial market, capital market and London foreign exchange market are all strengthening. The efficiency of financial markets has a significant impact on the effective functioning of financial markets and thus on the efficiency of real economic operations. Market efficie
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7

Huang, Jingyi. "The Market Efficiency in the Significant Events/Global Events: A Review of Empirical Research." Advances in Economics, Management and Political Sciences 51, no. 1 (2023): 6–11. http://dx.doi.org/10.54254/2754-1169/51/20230600.

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The efficient market hypothesis is a significant theory widely applied in modern economic and financial research about the impact of sudden global emergencies on various markets. Investigating the influence of the Efficient Market Hypothesis on public contingencies can augment the understanding of market behavior and investors decision-making processes. This could enable anticipating market trends and risks, facilitating prudent investment activities. This study examines the empirical research through the methodology chosen, application, and comparison of conclusions to summarize the effects o
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8

Manao, Alwinda, Ikaputera Waspada, and Maya Sari. "Efficient Capital Market Theory and its Implications for Investment Decision Making in Financial Markets." Dinasti International Journal of Economics, Finance & Accounting 5, no. 6 (2025): 5963–71. https://doi.org/10.38035/dijefa.v5i6.3682.

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The Efficient Capital Market (ECM) theory is an important foundation in the understanding of modern financial markets, which states that asset prices reflect all available information. This article aims to analyze the implications of ECM on investment decision-making, as well as explore the differences between passive and active investment strategies in the context of an efficient market. The method used is a literature review, which includes an analysis of previous research results on market efficiency and investor behavior. The results of the Efficient Capital Market (ECM) Theory study have
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9

Das, Amaresh. "Martingales, Efficient Market Hypothesis and Kolmogorov’s Complexity Theory." Information Management and Business Review 2, no. 6 (2011): 252–58. http://dx.doi.org/10.22610/imbr.v2i6.905.

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Efficient market theory states that financial markets can process information instantly. Empirical observations have challenged the stricter form of the efficient market hypothesis (EMH). These empirical observations and theoretical considerations show that price changes are difficult to predict if one starts from the time series of price changes. This paper provides an explanation in terms of algorithmic complexity theory of Kolmogorov that makes a clearer connection between the efficient market hypothesis and the unpredictable character of stock returns.
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Emad Azhar Ali, Syed, Fong-Woon Lai, and Muhammad Kashif Shad. "Investors’ risk perception in the context of efficient market hypothesis: A conceptual framework for malaysian and indonesian stock exchange." SHS Web of Conferences 124 (2021): 03002. http://dx.doi.org/10.1051/shsconf/202112403002.

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The advocates of the Efficient Market Hypothesis (EMH) theory postulates that share prices depict all the available information concerning its intrinsic worth. EMH espouses the Random Walk Theory i.e. future stock returns cannot be predicted based on past movement patterns. Contrary to that, there are believers of the Adaptive Market Hypothesis (AMH) who have questioned the adaptability of EMH and argues that market efficiency and investor’s risk perception varies across time, thus, stock returns can be predicted through active portfolio management. Various Studies have argued on market effici
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1), Thian Cheng Lim, Xiu Yun Lim 2), and Riuyang Zhai 3). "History of the Efficient Market Hypothesis." International Journal of Management Sciences and Business Research 1, no. 11 (2012): 01–8. https://doi.org/10.5281/zenodo.3401895.

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This paper reviews and summarizes the work of Sewell (2011). The purpose is to investigate the evolution and development of the Efficient Market Hypothesis from its inception as theory of probability to Fama (1965) proposition and revision (Fama, 1970; 1991). It discusses the random walk theory and reports the various research papers that have been written on the subject. This paper also clarifies the debate on the validity of EMH and explains the importance of EMH to finance theory.
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Renigier-Biłozor, Małgorzata, and Radosław Wiśniewski. "The Effectiveness of Real Estate Market Versus Efficiency of Its Participants." European Spatial Research and Policy 19, no. 1 (2012): 95–110. http://dx.doi.org/10.2478/v10105-012-0008-5.

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Real estate markets (REMs) may be classified as strong-form efficient, semi-strong-form efficient or weak-form efficient. Efficiency measures the level of development or goal attainment in a complex social and economic system, such as the real estate market. The efficiency of the real estate market is the individual participant's ability to achieve the set goals. The number of goals is equivalent to the number of participants. Every market participant has a set of specific efficiency benchmarks which can be identified and described. In line with the theory of rational expectations, every parti
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Ying, Qianwei, Tahir Yousaf, Qurat ul Ain, Yasmeen Akhtar, and Muhammad Shahid Rasheed. "Stock Investment and Excess Returns: A Critical Review in the Light of the Efficient Market Hypothesis." Journal of Risk and Financial Management 12, no. 2 (2019): 97. http://dx.doi.org/10.3390/jrfm12020097.

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The expansion of investment strategies and capital markets is altering the significance and empirical rationality of the Efficient Market Hypothesis. The vitality of capital markets is essential for efficiency research. The authors explore here the development and contemporary status of the efficient market hypothesis by emphasizing anomaly/excess returns. Investors often fail to get excess returns; however, thus far, market anomalies have been witnessed and stock prices have diverged from their intrinsic value. This paper presents an analysis of anomaly returns in the presence of the theory o
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14

Schulz, Rodney. "Guest Editorial: Oil and Efficient-Market Theory." Journal of Petroleum Technology 59, no. 03 (2007): 20–22. http://dx.doi.org/10.2118/0307-0020-jpt.

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15

Lee, Dwight R., and James A. Verbrugge. "The Efficient Market Theory Thrives on Criticism." Journal of Applied Corporate Finance 9, no. 1 (1996): 35–41. http://dx.doi.org/10.1111/j.1745-6622.1996.tb00099.x.

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16

Lin, Xie. "The Limitations of the Efficient Market Hypothesis." Highlights in Business, Economics and Management 20 (November 30, 2023): 37–41. http://dx.doi.org/10.54097/hbem.v20i.12311.

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The Efficient Market Hypothesis (EMH) has long been a fundamental theory in finance, asserting that financial markets are efficient and that asset prices reflect all available information. However, empirical evidence suggests limitations in three critical aspects. Firstly, momentum and reversal phenomena challenge the EMH, indicating the existence of persistent price trends and patterns that deviate from immediate information incorporation. Secondly, the presence of inside information and insider trading undermines the assumption of equal access to information, revealing information asymmetry
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17

GULKO, LES. "THE ENTROPY THEORY OF STOCK OPTION PRICING." International Journal of Theoretical and Applied Finance 02, no. 03 (1999): 331–55. http://dx.doi.org/10.1142/s0219024999000182.

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An informationally efficient price keeps investors as a group in the state of maximum uncertainty about the next price change. The Entropy Pricing Theory (EPT) captures this intuition and suggests that, in informationally efficient markets, perfectly uncertain market beliefs must prevail. When the entropy functional is used to index the market uncertainty, then the entropy-maximizing market beliefs must prevail. The EPT resolves the ambiguity of asset valuation in incomplete markets, notably, the valuation of derivative securities. We use the EPT to derive a new stock option pricing model that
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18

Kamada, Yuichiro, and Fuhito Kojima. "Efficient Matching under Distributional Constraints: Theory and Applications." American Economic Review 105, no. 1 (2015): 67–99. http://dx.doi.org/10.1257/aer.20101552.

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Many real matching markets are subject to distributional constraints. These constraints often take the form of restrictions on the numbers of agents on one side of the market matched to certain subsets on the other side. Real-life examples include restrictions on regions in medical matching, academic master's programs in graduate admission, and state-financed seats for college admission. Motivated by these markets, we study design of matching mechanisms under distributional constraints. We show that existing matching mechanisms suffer from inefficiency and instability, and propose a mechanism
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19

James, Kevin R., and Marcela Valenzuela. "The Efficient IPO Market Hypothesis: Theory and Evidence." Journal of Financial and Quantitative Analysis 55, no. 7 (2020): 2304–33. http://dx.doi.org/10.1017/s0022109019000784.

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We derive the optimal underwriting method and the quantitative initial public offering (IPO) pricing rule that this method implies in a market with informational frictions consisting of fully rational banks, issuers, and investors. In an efficient IPO market, an issuer’s expected initial return will be determined entirely by the combination of this pricing rule and issuer fundamentals. Applying this rule, we find that we can explain the quantitative magnitude of the principal aspects of the time-series and cross-sectional variation in IPO average initial returns. We conclude that the IPO marke
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20

Bell, Holly A. "Velocity of Information in Efficient Markets: A Theory of Market Value Change." Journal of Investing 21, no. 3 (2012): 55–59. http://dx.doi.org/10.3905/joi.2012.21.3.055.

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21

Gilbert, Richard J. "The Role of Potential Competition in Industrial Organization." Journal of Economic Perspectives 3, no. 3 (1989): 107–27. http://dx.doi.org/10.1257/jep.3.3.107.

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Potential competition is important as a mechanism to control market power. I assess the strengths and limitations of alternative theories of potential competition by examining the available theoretical, empirical and institutional knowledge. I consider four major schools of thought: the traditional model of limit pricing, dynamic limit pricing, the theory of contestable markets, and the market efficiency model. Traditional limit pricing models rest on the assumption that firms respond to entry but are able to earn persistent profits when the structural characteristics of markets make entry dif
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22

Mphoeng, Mphoeng. "Testing for Weak-Form Market Efficiency in the Botswana Stock Market." Archives of Business Research 7, no. 9 (2019): 134–40. http://dx.doi.org/10.14738/abr.79.6640.

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The theory of the Efficient Market Hypothesis (EMH) has been debated extensively. In this study the runs test was employed on the Botswana Stock Exchange daily Domestic Companies and Foreign Companies indices to test whether the Botswana stock market follows the random walk process and subsequently determine weak-form market efficiency. The results of the runs test showed that the indices do not follow the random walk process. As a result the Botswana stock market is determined to be weak-form market inefficient and rejects the efficient market hypothesis accordingly.
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23

Khunnawannaphong, Ramede. "Adaptive Market Efficiency Hypothesis in ASEAN Stock Markets: A Variance Ratio Analysis Across Market Capitalization Segments." Journal of Economics, Finance and Accounting Studies 6, no. 4 (2024): 82–89. http://dx.doi.org/10.32996/jefas.2024.6.4.9.

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This study examines the efficiency of the ASEAN stock market and investigates the dynamic adaptability of this efficiency over time. Utilizing advanced methodologies, including the Multiple Variance Ratio (MV) and Wild Bootstrapped Variance Ratio (WBVR) tests, in conjunction with the Rolling Window technique, the research assesses market efficiency across different periods from March 2009 to March 2024. The analysis is conducted using daily price data, segmented into the overall market and three sub-groups based on market capitalization, to explore the potential impact of company size on marke
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Scholl, Maarten P., Anisoara Calinescu, and J. Doyne Farmer. "How market ecology explains market malfunction." Proceedings of the National Academy of Sciences 118, no. 26 (2021): e2015574118. http://dx.doi.org/10.1073/pnas.2015574118.

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Standard approaches to the theory of financial markets are based on equilibrium and efficiency. Here we develop an alternative based on concepts and methods developed by biologists, in which the wealth invested in a financial strategy is like the abundance of a species. We study a toy model of a market consisting of value investors, trend followers, and noise traders. We show that the average returns of strategies are strongly density dependent; that is, they depend on the wealth invested in each strategy at any given time. In the absence of noise, the market would slowly evolve toward an effi
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Kumar, Anil, and Neha. "Testing the Weak Form Efficient Market Hypothesis: An Interpretive Study of Market Efficiency Via Literary Logic and Evidence." Journal of Global Economics, Management and Business Research 17, no. 2 (2025): 26–36. https://doi.org/10.56557/jgembr/2025/v17i29290.

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The Efficient Market Hypothesis (EMH) is among conventional finance's most hotly contested topics. EMH theory was first put forth in 1965 by Eugene Fama; it holds that no investor can make excess profit without engaging in high-risk assets since the stock prices rapidly reflect all the information instantly. The idea of EMH has been challenged by many studies since it is not only the rationality of investors on which investors founded the judgements, but also other elements like individual and personal opinions, behaviour, and heuristics that affect their decisions. The core concept of EMH has
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Pan, Heping. "A BASIC THEORY OF INTELLIGENT FINANCE." New Mathematics and Natural Computation 07, no. 02 (2011): 197–227. http://dx.doi.org/10.1142/s1793005711001895.

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This paper presents a basic theory of intelligent finance as a new paradigm of financial investment. It is assumed that the financial market is always in a state of swing between efficient and inefficient modes on multiple levels of time scale; it is possible to go beyond the efficient market theory to study the dynamic evolving process of the market between equilibrium and far-from-equilibrium; there are robust dynamic patterns in this evolving process, which may be exploitable via intelligent trading systems. On the foundation of the four principles — comprehensive, predictive, dynamic and s
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Thaker, Keyur, and Abhani Jitendra K. "Efficient Market Theory: In Relation with Bonus Issue Announcement in Indian Market." Paradigm 12, no. 2 (2008): 62–72. http://dx.doi.org/10.1177/0971890720080207.

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GULKO, LES. "THE ENTROPY THEORY OF BOND OPTION PRICING." International Journal of Theoretical and Applied Finance 05, no. 04 (2002): 355–83. http://dx.doi.org/10.1142/s021902490200147x.

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An informationally efficient price keeps investors as a group in the state of maximum uncertainty about the next price change. The Entropy Pricing Theory (EPT) captures this intuition and suggests that, in informationally efficient markets, perfectly uncertain market beliefs must prevail. When the entropy functional is used to index collective market uncertainty, then the entropy-maximizing consensus beliefs must prevail. The EPT resolves the ambiguity of arbitrage-free valuation in incomplete markets. The EPT produces a new bond option model that is similar to Black–Scholes' with the lognorma
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29

Li, Mulan, and Bin Wang. "Efficiency Analysis of Private Lending Market in China—Based on Hurst Index." Journal of Economics and Public Finance 8, no. 3 (2022): p23. http://dx.doi.org/10.22158/jepf.v8n3p23.

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This paper explored the efficiency of the private lending market based on the fractal market theory. We used the rescaled range analysis method and the generalized Hurst exponent analysis method respectively, and we got that the private lending market had not yet reached the weakly efficient level and was anti-persistent. Then we further used the time-varying Hurst index to describe the dynamic changes in the efficiency of the private lending market and analyzed the Chinese stock market and foreign exchange market as a comparative analysis. We found that among the three markets, the efficiency
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Pîrvuţ, Valentin. "Leasing in the Romanian Theory and Practice." Scientific Bulletin 21, no. 2 (2016): 109–14. http://dx.doi.org/10.1515/bsaft-2016-0044.

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Abstract From the perspective of national economy, leasing represents a means of reorientating investments by attracting several new external financial sources in economy and a solution for launching on the market the products that have a limited demand and a low level of purchasing. Leasing represents an important factor in developing and making foreign trade more efficient through the possibility of entering on new markets and of opening new partnerships. Also, leasing attracts important financial resources since it has principal factors such as efficiency and safety.
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Razzaq, Bilal, Sabra Noveen, Adeel Mustafa, and Rabia Najaf. "ARBITRAGE PRICING MODEL IN RELATION TO EFFICIENT MARKET HYPOTHESES." International Journal of Research -GRANTHAALAYAH 4, no. 7 (2016): 137–49. http://dx.doi.org/10.29121/granthaalayah.v4.i7.2016.2605.

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The purpose of this thesis is to distinguish between efficient and inefficient markets and check the validity and efficiency of Arbitrage Pricing Theory in these markets (United States and Hong Kong).
 In order to distinguish between efficient and inefficient markets, Durbin Watson Autocorrelation tests were applied on 12 stock exchanges name EUROPE, HONG KONG, INDIA, TAIWAN, AMSTERDAM, MALAYSIA, UNITED STATES, CANADA, TOKYO, AUSTRALIA, AUSTRIA, and SWITZERLAND. Furthermore, the efficiency was further checked through comparison of the market and locally listed mutual funds. After the sele
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32

Keane, Simon M. "Paradox in the current crisis in efficient market theory." Journal of Portfolio Management 17, no. 2 (1991): 30–34. http://dx.doi.org/10.3905/jpm.1991.409326.

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33

Polleit, Thorsten. "Modern Financial Market Theory – A Critique Based on the Logic of Human Action." Credit and Capital Markets – Kredit und Kapital: Volume 54, Issue 3 54, no. 3 (2021): 447–67. http://dx.doi.org/10.3790/ccm.54.3.447.

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The modern financial market theory (MFMT) – based on the efficient market hypothesis, rational expectation theory, and modern portfolio theory – has become the standard approach in financial market economics. In this article, the MFMT will be critically ­reviewed using the logic of human action (or: praxeology) as an epistemological meta­theory. It will be shown that the MFMT exhibits (praxeo-)logical deficiencies so that it cannot provide investors with well-founded decision-making support in real-world financial markets.
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Nitin Tanted and Prashant Mistry. "An Empirical Study on Efficient Market Hypothesis with reference to FMCG Sector." GIS Business 15, no. 1 (2020): 109–26. http://dx.doi.org/10.26643/gis.v15i1.17895.

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One of the highly controversial issues in the area of finance is “Efficient Market Hypothesis”. Efficient Market Hypothesis states that, “In an efficient market, all available price information is reflected in the stock prices and it is not possible to generate abnormal returns compared to other investors.” A lot of studies conducted previouslyto test the Efficient Market Hypothesis, confirmed the theory until recent years, when some academicians found it to be non-applicable in financial markets. According to them, it is possible to forecast the stock price movements using Technical Analysis.
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Yulianti, Eka, and Dwi Jayanti. "PENGUJIAN EFISIENSI PASAR BENTUK LEMAH PADA PASAR MODAL INDONESIA PERIODE 2014-2017." GEMA : Jurnal Gentiaras Manajemen dan Akuntansi 11, no. 2 (2019): 178–90. http://dx.doi.org/10.47768/gema.v11i2.169.

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Investigate the current consumption of assets for the benefit of the future. The investment canbe done by only one in the capital market which means that the investment is invested in the initialcapital assets. Profit or the same value is aimed at the investor's main interest in investing not releasedfrom risk money. Such risks are inevitably uncertain about information movement in the stock market.Relevant information available can be used as a basis for making decisions when to buy shares orretain holdings of shares. In addition, information can also be a basis for consideration when to rele
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BIANCHI, SERGIO, ALEXANDRE PANTANELLA, and AUGUSTO PIANESE. "EFFICIENT MARKETS AND BEHAVIORAL FINANCE: A COMPREHENSIVE MULTIFRACTIONAL MODEL." Advances in Complex Systems 18, no. 01n02 (2015): 1550001. http://dx.doi.org/10.1142/s0219525915500010.

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Real-world financial dynamics daily do challenge the credibility of the Efficient Market Hypothesis, the pillar of the whole martingale-based modern financial theory stating that at any time asset prices discount all past information. As a matter of fact, the empirical evidence accumulated so far indicates that current models cannot explain the complexity of financial market movements, to the extent that a strand of skeptical thought, the Behavioral Finance, has been booming. The question whether a model exists which is able to make consistent the two paradigms is a living matter that financia
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Maaz Javed and Saud Ahmad. "Role of Market Microstructure in Price Convergence: A Historic Meta-Review." PERENNIAL JOURNAL OF HISTORY 4, no. 1 (2023): 82–95. http://dx.doi.org/10.52700/pjh.v4i1.142.

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This study aims to revisit the assumptions of economic theory that lead to the predictions of competitive equilibrium theory. Extensive work has already been done to answer how well these assumptions of microeconomic theory approximate the real-world market. In this context, two kinds of tools can be found in the literature that tries to answer this question. One is experimental economics (EE) where individuals are involved in a simplified market that mirrors the real-world markets. Human behavior is observed here under an alternating set of rules. The second tool is agent-based Modeling (ABM)
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Maaz Javed and Saud Ahmad. "Role of Market Microstructure in Price Convergence: A Meta Analysis." PERENNIAL JOURNAL OF HISTORY 4, no. 1 (2023): 82–95. http://dx.doi.org/10.52700/pjh.v4i1.144.

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This study aims to revisit the assumptions of economic theory that lead to the predictions of competitive equilibrium theory. Extensive work has already been done to answer how well these assumptions of microeconomic theory approximate the real-world market. In this context, two kinds of tools can be found in the literature that tries to answer this question. One is experimental economics (EE) where individuals are involved in a simplified market that mirrors the real-world markets. Human behavior is observed here under an alternating set of rules. The second tool is agent-based Modeling (ABM)
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Hadianto, Bram, Hendrik Hendrik, and Trishya Yuwana. "Does The Efficient Market Theory In The Weak Form Exist? Evidence From Indonesia." Jurnal Manajemen Indonesia 21, no. 2 (2021): 183. http://dx.doi.org/10.25124/jmi.v21i2.2703.

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In the weak-form market efficiency theory, investors cannot predict the movement of all prices because of randomness. This circumstance happens because of a quick market reaction to new information. Conversely, suppose the market is not efficient in this shape; in that case, the investors can obtain an abnormal return. One of the reasons is the thin market, where many inactive stocks to be traded are available. Based on these issues, this research intends to examine this theory by employing runs testing on the daily returns of the Indonesia Composite Index (ICI) between January 2014 and Decemb
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40

Berghorn, Wilhelm, Martin T. Schulz, and Sascha Otto. "Fractal Markets, Frontiers, and Factors." International Journal of Financial Research 12, no. 5 (2021): 104. http://dx.doi.org/10.5430/ijfr.v12n5p104.

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We develop an alternative view to the modern finance theory that essentially suggests equilibria in efficient markets by taking a risk-based view of asset returns in stock markets. Based on a mathematical analysis of stock market data using multi-scale approaches, we will alternatively describe markets and factors as trend-based fractal processes and analyze well-known factor premiums, which leads to a return-based view of markets and a model of investors reacting to market environments. We conclude that markets could be viewed alternatively as fractal, non-stationary and, at most, asymptotica
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Pr.Latifa, Ghalayini, and Alkees Sally. "Efficiency of Lebanese and Arab Gulf Financial Markets." Journal of Economics and Business 2, no. 3 (2019): 687–703. https://doi.org/10.31014/aior.1992.02.03.119.

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Various studies have been made to test the efficiency of market in Lebanon and Arab Gulf States (AGS) theoretically and empirically, focusing mainly on building a model using the conventional finance. The purpose of this paper is to test the efficiency of AGS financial markets as well as the Lebanese one based on stationary method; furthermore it explores the reasons behind the non-efficiency in case it exists. However, to realize this objective ,this paper overviews the different methods behind testing efficiency in order to choose and use the most common one ,furthermore it studies also the
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Jasienė, Meilė, Arvydas Paškevičius, and Ieva Astrauskaitė. "BOND MARKET ANALYSIS: THE MAIN CONSTRAINTS IN THE RESEARCH OF 21ST CENTURY." Business, Management and Education 11, no. 2 (2013): 224–40. http://dx.doi.org/10.3846/bme.2013.13.

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Searching for alternative source of bank financing, the view on capital market is taken. Recent research on capital market issues are arranged into four dimensions: theory and assumptions of efficient capital market, government’s role in it, other distortions and global interrelatedness. Main investigations are decentralized and visualized in “theoretical eight” model. Conclusions made on the diversity of interpretation of market efficiency, strongly expressed demand of information symmetry, soft actions of governments and the value of foreign performance in domestic markets. Furthermore, new
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Wiśniewski, Radosław. "Efficient real estate market in Poland." Economics and Business Review 8, no. 1 (2008): 55–79. http://dx.doi.org/10.18559/ebr.2008.1.544.

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The information efficiency of the real estate market is its ability to fully and immediately reflect all significant information in real estate prices. Efficiency is understood as the continuous reflection of respective information entering the system in real estate transaction prices, assuming this information is known, understood and unconditionally part of the decision-making process. Efficiency may be defined on two levels. The first one relates to the organization effectiveness of market system structures. The other one is related to the precision with which the price established on the r
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Fernando, Antonio Noriega Ureña. "A Critical Review of Competitive Firm's Theory." British Journal of Economics, Management & Trade 17, no. 3 (2017): 1–14. https://doi.org/10.9734/BJEMT/2017/33194.

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<strong>Aims: </strong>In the first place, to demonstrate that the economic behavior that neoclassical theory attributes to competitive firms is technically inefficient since it does not correspond to the highest possible internal rate of return, which implies the violation of the first theorem of welfare. Secondly, overcoming error in the economic behavior of competitive firms gives rise to the basic results of the theory of nonexistence of the labor market (TNLM), on which the theorem of superiority, a basic element of its construction, is finally proved. <strong>Methodology:</strong> The de
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Bolek, Monika, Agata Gniadkowska-Szymańska, and Katerina Lyroudi. "Covid-19 Pandemic and Day-of-the-week Anomaly in Omx Markets." Central European Economic Journal 9, no. 56 (2022): 158–77. http://dx.doi.org/10.2478/ceej-2022-0010.

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Abstract This paper aims to discuss market efficiency due to the changes that appeared in this field after the COVID-19 outburst. The OMX exchange and its indices are taken into consideration because they represent markets not analysed in such a context before (a) Baltic: Estonia, Latvia and Lithuania; (b) Scandinavian: Denmark, Finland, Iceland, Norway and Sweden). Two periods before and during the COVID-19 pandemic are considered (January 2009 to January 2020 and February 2020 to February 2021), and the efficient market hypothesis is tested together with the day-of-a-week effect anomaly to r
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McCarthy, Mary, Paul Solomon, and Paul Mihalek. "Financial Crisis During 2007 And 2008: Efficient Markets Or Human Behavior?" Journal of Applied Business Research (JABR) 28, no. 6 (2012): 1275. http://dx.doi.org/10.19030/jabr.v28i6.7342.

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The recent U.S. financial crisis, the U.S. stock market crash of 1987, and other recent anomalies have seriously challenged Famas classic efficient capital markets hypothesis. These events have made it likely that future capital markets research will be enriched by the important role that human behavior plays in the success or failure of the financial markets. This paper examines the factors causing the recent crisis within the United States financial services sector, the degree to which it may be explained by efficient capital markets theory and the degree to which such behavioral finance con
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Woolley, Paul. "The Fallibility of the Efficient Market Theory: A New Paradigm." CFA Institute Conference Proceedings Quarterly 31, no. 2 (2014): 32–35. http://dx.doi.org/10.2469/cp.v31.n2.6.

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Zhang, Aibo. "An Empirical Study on The Calendar Effect of The Shanghai Index in China." Frontiers in Business, Economics and Management 9, no. 3 (2023): 41–46. http://dx.doi.org/10.54097/fbem.v9i3.9486.

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The premise of traditional financial theory is efficient market theory and rational man hypothesis, while the market anomaly which can not be explained by traditional financial theory such as the calendar effect poses a great challenge to traditional financial theory. This paper uses the daily closing price data of the Shanghai Composite Index from December 19, 1999, to May 6, 2022, to investigate the calendar effect of the logarithmic return of the Shanghai Composite Index. The research results show that China's Shenzhen stock market is inefficient and has a negative Tuesday effect, which emp
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Datta, Gavin. "The Market Efficiency Debate: Developments of Financial Market Theories." International Business & Economics Studies 6, no. 5 (2024): p146. http://dx.doi.org/10.22158/ibes.v6n5p146.

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A united hypothesis to explain the price movement of financial assets has been a significant research goal over the past few decades. This paper reviews the existing literature on both Efficient Markets and Behavioral Finance, concluding with more contemporary literature that attempts to combine the two theories. It summarizes the EMH and Behavioral Finance concepts, the debate between them, and the evidence supporting both. By recognizing the vast swaths of evidence in support of both hypotehses, one can conclude that the questions surrounding the efficiency or inefficiency of markets remain
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Ćosić, Karlo, and Anita Čeh Časni. "The impact of cryptocurrency on the efficient frontier of emerging markets." Croatian Review of Economic, Business and Social Statistics 5, no. 2 (2019): 64–75. http://dx.doi.org/10.2478/crebss-2019-0012.

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AbstractCryptocurrencies are a sweltering topic in modern times of investment strategies. Since the cryptocurrency market is classified as an emerging market, in this paper a portfolio of emerging markets is compiled from the indices of four European Union (EU) countries and one cryptocurrency. The aim of this paper is to investigate how the incorporation of the Bitcoin cryptocurrency into the portfolio affects the performance of the portfolios of these countries. Moreover, by drawing an efficient frontier, the paper identifies where Bitcoin stands relative to other indices in the portfolio. T
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