literature review of capital market

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Theory of Capital Markets: A Review of Literature

The main purpose of this essay is to revisit the relevant theory and evidence regarding the informationally efficient capital markets. It explores the normative theory of perfect capital markets, the stochastic notion of random walk, the martingale theory, and various forms of market efficiency under the efficient markets hypothesis (EMH). It also summarizes a large body of empirical studies that has attempted to test how efficient the actual capital markets have been information-wise relative to the normative criteria. Despite empirical evidence against these theories, however, efficiency in capital markets still remains high in short horizons, provided also that competition for information is high, and that professional traders who employ certain trading rules should not consistently outperform the markets.

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This study aimed at revisiting and divulging the existing empirical evidence regarding the informational efficiency and random walk in stock markets of developed and emergent markets. The critical analysis of statistical tools used is out of the purview of this study. Most of the empirical literature on the topic after the seminal work of Fama (1965a) is based on the developed markets. However, emergent markets received greater attention of the researchers after the huge inflow of capital in these markets after financial liberalization. Review of literature reveals varied results for efficiency and random walk in case of developed and emerging markets. Developed markets empirically found to be more efficient than emergent markets. Highly contradictory results are observed for emerging markets depending on the size, influence of insider trader, market integration, liberalization, trading volume, trading process, and infrequent trading. Empirical evidence in favour or against efficien...

The efficient market theory has given rise to numerous controversies which have further generated new research trends, some focusing on complex mathematical models, whereas others focusing on different hypotheses of financial markets approached form completely new perspectives. In this article, we present the new paradigms in the field of financial market efficiency, such as: the Adaptive Market Hypothesis, the Noisy Market Hypothesis, the Fractal Market Hypothesis and the Behavioural Finance. Also, we analyse the effects of fractal market hypothesis and of behavioural finance on emerging capital markets.

The concept of efficiency is central to finance. For many years, academics and economics have studied the concept of efficiency applied to capital markets, efficient market hypothesis (EMH) being a major research area in the specialized literature. There are many opposite views regarding the EMH, some of them rejecting it, other supporting it. But how it all started and the way studies evolved during the last decade is very important. This survey examines the growing body of empirical research on efficient market hypothesis. The conclusion of this article is that testing for market efficiency is difficult and there is a high possibility that, because of changes in market / economic conditions, new theoretical model should be developed to take into consideration all changes. As a reasons, it is important to continue the empirical studies to decide if capital markets are or are not informational efficient.

Finance and Market, 2018

International Journal of Business Marketing and Management (IJBMM), 2022

The present paper claims to test the informational efficiency hypothesis of moroccan stock market, by reviewing the main fundamentals of the efficient market hypothesis, the basis of all theoretical developments and empirical applications of classical financial theory. we tried to verify the existence of the weak form of financial market efficiency by using the Masi stock index series, In this regard, the tests used are the runs test, the autocorrelation test, the unit root test and the variance ratio test. The results of the tests used showed the absence of the weak form of stock market efficiency.

The notion of efficient market hasdominated the stage in finance. Over the years, academic scholars in finance and economics have strived to understudy the underlying conception of efficiency as it ascribed to capital markets. This topic has generated numerous opposing and opposite views and understandings with regard to efficient market hypothesis, some of the views rejected the underlying principles of EMH while others lent credence and support to it. However, a trace of the way in which the studies emerged in the last decade is of paramount importance.This study therefore stretches itself toscrutinize the increasing breadth of empirical works that boarder on the efficiency of markets, taking into consideration the underlying hypothesis. The resolve of the study is that ascertaining efficiency of market per time is cumbersome thereby raising thelikelihood that, because of vagaries in market environment, uncertainty surrounding economic settings, new modalities, theories and model ...

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Islamic Thought and the Art of Translation (texts in honor of William Chittick and Sachiko Murata), 2023

In 1262/1846, Asad Allāh Qazwīnī completed the treatise "Kitāb-i Walāyat-i muṭlaqa" (The Book of Absolute Walāya). It was a testament to his views on the cosmological role of the twelve Shiʿi imams. That Persian treatise is offered here for the first time in a critical edition, along with an introduction to the author, his life, and the significance of this text. “Asad Allāh Qazwīnī’s Cosmology of the Ahl al-bayt: A Study and Critical Edition of Kitāb-i Walāyat-i muṭlaqa,” introduction by Cyrus Ali Zargar, edition by Alireza Asghari, *Islamic Thought and the Art of Translation: Texts and Studies in Honor of William C. Chittick and Sachiko Murata*, ed. Mohammed Rustom, Leiden: Brill, 2023, pp. 389-415.

Fruit of Knowledge, Wheel of Learning: Essays in Honour of Robert Hillenbrand, 2022

FUNDAMENTACIÓN El diseño del presente Manual guarda una estrecha relación con la naturaleza de la asignatura. Lenguaje y Comunicación es un curso que no pretende continuar los tradicionales programas académicos de la escolaridad en los que los contenidos temáticos se delinean con una orientación teorizante, y los que al cabo de 11 años no logran convertir al idioma español en una herramienta efectiva para la comunicación ni para su proceso de aprendizaje. En nuestro caso, los contenidos han sido programados con la finalidad de ofrecer a los aprendices un marco real para el análisis y comprensión de textos. Ello implica un tratamiento holístico de los temas. Es importante que instructores y aprendices se desprendan de esquemas establecidos y se trabaje el manual con un orden no necesariamente secuencial, sino que se le dé un tratamiento activo recurriendo a él y a las anotaciones teóricas según las exigencias de los temas o las necesidades de los aprendices. En la actualidad, los novedosos recursos empleados por los profesionales en la educación exigen que el alumno sea más autodidacta. Es por ello que, como complemento al presente manual, los alumnos trabajarán en una plataforma virtual a modo de gestionar su propio aprendizaje (autoestudio).

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