Study on efficient market hypothesis on financial stock markets
Abstract. This article critically examines market efficiency and the efficient market hypothesis EMH. The three forms of market efficiency are defined and illustrated, while a The result of this study also leads to the rejection of the null hypothesis of efficiency. H. The stock markets in all GCC countries are efficient in the weak form and accept the. The main purpose of this article is to study efficiency. assumptions of the Egyptian market and its characteristics. the random movement of stock prices with a focus on the weak. e cient. The efficient market hypothesis EMH states that market prices fully reflect all available information. This idea was developed independently by Paul A. Samuelson and Eugene F. Fama in s and has been extensively applied to theoretical models and empirical studies of the prices of financial securities, yielding significant returns. According to Guerrien and Gun, 2011, the efficient market hypothesis EMH is gradually becoming one of the most important research topics in finance and economics. Market efficiency, as is commonly believed, comes in three forms: strong, weak and semi. Different forms of market performance have different criteria. In the literature, studies analyzed market efficiency for stock markets, foreign exchange markets, and bond markets. 12 and 5 provide a literature review on stock market efficiency. The construct of efficiency is one of the indispensable constructs in the financial world. Market efficiency is a term used in many different contexts with many different meanings. surveys that support or challenge the efficiency or inefficiency of African stock markets. such as the behavioral finance hypothesis. This essay uses daily closing prices of leading market indices from a time - 2013. The stock returns have been subjected to unit root tests such as the Augmented Dickey Fuller test and a panel unit root test. Moreover, the existence of random walks for these stock markets has also been investigated through the Jarque-Bera, Abstract. Most of the efficient market research to date has focused on developed markets such as the US and European securities markets. Not much research has been done on the strong form of the efficient market hypothesis in developing country markets such as India. The efficient market hypothesis suggests that stock markets are.