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An Examination of Weak Form Efficiency of BSE 100 Index Companies

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Author Info
Ashutosh Verma
Nageshwar Rao
Abstract

This paper examines the weak form efficiency of the companies included in the BSE 100 index as on March 31, 2001 by applying serial correlation and run test. The analysis has been done for three years, i.e., 1998-1999, 1999-2000 and 2000-2001 taking the sample of share prices from April 1 to March 31. While the results for the first two years show that the market is not weak form efficient, the results of 2000-2001 indicate that the market is weak form efficient. The study raises an important question regarding the selection of the sample period. By analyzing the findings it can be said that the market is moving towards better assimilation and reflection of historical information in stock prices.

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Publisher Info
Article provided by Icfai Press in its journal The Icfai Journal of Financial Economics.

Volume (Year): V (2007)
Issue (Month): 4 (December)
Pages: 81-93
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Handle: RePEc:icf:icfjfe:v:05:y:2007:i:4:p:81-93

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