Are emerging Finacial Markets efficient- Some evidence from the models of the Ghanaian Stock Market.pdf

1、The study of stock market efficiency has been the objective ofmany researches across the globe since thelast few decades. However, the evidence is mixed on whether the stock market is efficient. Wlule somestudies conclud

2、e that the stock markets are efficient, other studies cast doubt on this conclusion. Inaddition, efficiency tests in the emerging financial markets are rarely defirutive in reaching a conclusionabout the issue. Stock mar

3、ket efficiency suggests that stock prices incorporate all relevant informationwhcn that information is readily available and widely disseminated, which implies that there is nosystematic way to exploit trading opportunit

4、ies and acquire excess profits. This paper in an attempt toprovide some empirical evidence on the efficiency of an emerging stock market that is the Ghanaian stockmarket, considers an overall trading period from 1989 t0

5、2010, which is further divided into pre-crisis(1997-2001) and post-crisis (2002-2007). The paper proposes a theory-free paradigm of non-parametrictests of market efficiency of the Ghanaian stock market, consisting of two

6、 tests, which are run-test, andautocorrelation function tests (ACF), to establish a more defirutive conclusion about the efficient markethypothesis (EMH) in emerging financial markets. The result of this research demonst

7、rates that anautocorrelation on Ghanaian stock market returns exists particularly during the post-crisis period. Theinefficiency of the Ghanaian stock market follows on from the violation of the necessary conditions for