Testing Adaptive Market Hypothesis in Global Islamic Stock Markets: Evidence from Markov-Switching ADF Test

Although market efficiency has been extensively examined in the literature, studies generally focus on conventional stock markets. Since is related to a well-functioning market, it of great importance for efficient allocation resources and also providing sustainable economic growth. Market not only important markets but Islamic as are gaining prominence. An increase scope worldwide creates motivation investigating Hence there growing interest With limited number that analyze hypothesis markets, this paper aims examine global via Markov-Switching Augmented Dickey-Fuller (MS-ADF) test. The linear unit root test result shows indices exhibit random walk properties consistent with Efficient Hypothesis. On other hand, nonlinear results suggest two-state regime-switching characteristics. MS-ADF indicate world developed stationary high volatility regime finding supports Adaptive However, emerging found be both regimes contradictory weak-form efficiency.