Evaluation of Stock Market Efficiency: A Case Study of Chitta gong Stock Exchange Limite
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Date
2014-06
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
CRP (International Islamic University Chittagong)
Abstract
The study is an attempt to empirically
examine the form or degree of capital market efficiency
for the case of Chittagong Stock Exchange (CSE) over
the period June 2008 through December 2009
employing the event study methodology which tests an
investment scheme that is based upon the trading on
information events and the event under consideration is
'earnings announcements ', The test result shows that
the degree of capital market efficiency is very low. The
presence of a good number of non-actively traded
shares, informational asymmetry, price manipulation,
floatation of so many IPOs within a short span of time
are the leading factors originating lower degree of
efficiency. Careful monitoring, effective intervention by
regulatory bodies, timely disclosure and dissemination
of all relevant information along with other corrective
measures can reduce the hesitancy of investors and a
significant level of market efficiency the CSE might
experience.
Description
Business Review Vol-03, Article-11, June 2014 (Page 165-178)
Keywords
Earnings Announcement, Capital Market, Market Efficiency, eSE
Citation
Business Review Vol-03, Article-11, June 2014 (Page 165-178)