Business Finance in Less Developed Capital Markets

By Klaus P. Fischer; George J. Papaioannou | Go to book overview

8
Market-Efficiency (Weak-Form) Tests of the Malaysian Stock Exchange

OTHMAN YONG

The stock-price behavior of the United States and Japan has been known to conform to the weak form of the efficient market hypothesis (EWH). The weak form of the EMH implies that the past history of prices cannot provide information that can be used to predict their movements in the future. According to the weak form of the EMH, stock prices are assumed to reflect all information that may be contained in the past history of the stock itself. Since the information itself is random, the stock-price movements should therefore be random.

Interest in the weak form of the EMH of small stock markets outside the United States has rapidly increased since Fama published his work in 1965 on the 30 stocks comprising the Dow Jones Industrial Average. Solnik ( 1973) did a study on European stocks; Conrad and Juttner ( 1973), on the behavior of stocks in Germany; Jennergren and Korsvold ( 1975), on Norwegian and Swedish stocks; Ang and Pohlman ( 1978), on Far Eastern stocks; and D'Ambrosio ( 1980), on Singaporean stocks. the findings were mixed, but most studies concluded that non-U.S. markets do deviate from the weak form of the EMH.

Nassir Lanjong ( 1983), Laurence ( 1986), and Barnes ( 1986) concluded that despite being a small and thinly traded market, the Malaysian stock market, surprisingly, is quite efficient in the weak sense of the EMH. Neoh Soon Kean ( 1985) suggested that the market is quite efficient in the weak form but not in the semistrong form. These studies, however, are not extensive enough and are not sufficiently representative of the market. Laurence ( 1986) used daily data of the 16 most active industrial stocks traded from June 1, 1973, to December 31, 1978, and Barnes ( 1986) used monthly data of the 30 most active stocks traded for the six years ended June 30, 1980, whereas many Malaysian stocks are not actively traded. Nassir Lanjong ( 1983) used monthly data of 104 stocks traded from January 1974

-137-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
Business Finance in Less Developed Capital Markets
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen
/ 398

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.