Abstract
In recent years, especially in the aftermath of the global financial meltdown, the performance of South Asia capital markets has attracted the attention of the researchers and investors across the globe. The resilient shown provides the impetus to examine the efficient market hypothesis in these markets. It is with this backdrop, this paper is an attempt to test the weak form efficiency of select South Asian capital markets (India, Sri Lanka, Pakistan, Bangladesh, and Mauritius) over the sample period spanning from January 2005 to October 2010. The application of unit root test provides the evidence that these markets are not weak form efficient which has both positive and negative implications. On the one hand, such inefficiency disturbs the allocation of national resources for development projects, and on the other hand, provides incentives for creation of innovative financial products thereby making the markets move towards efficiency in the long run.
P K Mishra. (2012) Efficiency of South Asian Capital Markets An Empirical Analysis, Pakistan Journal of Commerce and Social Sciences, Volume 6, Issue 1.
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