because of the heterogeneity in behavior, in the real world prices may deviate substantially and persistently from their fundamental values. of course, if these heterogeneous elements play a rather minor role then asset prices and rates of return will be determined mainly by economic fundamentals and rational behavior. by observing actual behavior in the stock market one can seek to isolate pro...

The ”Efficient Market Hypothesis” (EMH) states that market outperformance is impossible through expert selection because each stock price efficiently incorporates and reflects all relevant evaluative information. We study the validity of EMH by analyzing the latent information of financial disclosures year over year. Specifically, we explore the concept of ”Lazy Prices”, the idea that changes i...

Efficient market hypothesis predicts that capital markets are beset with cer-tain biases which result from wrong estimation, and negatively influence shareholders’ expectations for higher returns, which in turn affects invest-ment efficiency, financial constraints and corporate performance efficacy in competitive markets, and eventually mitigates firm value. The present study aims at examining ...

the concept of countervailing power is a term to describe the situation in which the market power of one side (sellers) may be balanced by the market power of another side(buyers) in a given market. the purpose of this paper is to test this hypothesis and to determine whether the market power of sellers has had a restraining influence on increases in buyer market power in iran’s large industrie...

This study examines the random walk hypothesis for the crude oil markets, using daily data over the period 1982–2008. The weak-form efficient market hypothesis for two oil crude markets (UK Brent and US West Texas Intermediate) is tested with non-parametric variance ratio tests developed by Wright (2000) and Belaire-Franch and Contreras (2004) as well as the wild-bootstrap variance ratio tests ...