Last Updated on October 4, 2023 by Fiza Khurram
Farah Naz and Sana Waheed from Kinnaird College for Women’s Department of Accounting and Finance embark on an empirical trip to investigate the subtle idea of market efficiency in the context of Asian rising nations during the COVID-19 epidemic.
Market efficiency, a fundamental principle in finance, holds that investors cannot benefit abnormally because stock prices represent all available information. The study, which focuses on important indicators of Asian growing nations such as China, Indonesia, India, Korea, Malaysia, Pakistan, the Philippines, Taiwan, and Thailand, runs from January 2020 to November 2021, documenting the pandemic’s chaotic time.
The study includes rigorous tests such as the Augmented Dickey-Fuller test, Autocorrelation function test, runs test, and Phillip-Perron tests to analyse the forms of market efficiency during this particular era. Given the existing literature’s disagreement on stock market efficiency between industrialised and emerging nations, the study predicts mixed outcomes, adding layers to our understanding of market behaviour throughout exceptional times.
This study is important for investors navigating complicated market landscapes, analysts seeking insights into market dynamics, and regulators looking to improve information flow. Understanding market efficiency is becoming increasingly important as the globe grapples with the lingering repercussions of the epidemic.
