The consequences of online information dissemination on stock market liquidity and efficiency: Implications on African markets
AbstractFrom the Efficient Market Hypothesis, a market is efficient if security prices fully and correctly reflect all available information that is relevant for the stock’s pricing. This requires a medium of information dissemination and transaction ordering with both speed and accuracy. This paper chronologically presents arguments in favour of the internet as one such medium. The internet has also enabled the transmission and archiving of bulky information in a ready-to-use format. And abnormal returns are now quickly observed and arbitraged away to non-existence. Using correlation analysis, we find a positive relationship between the internet and some stock market development indicators.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 24971.
Date of creation: Oct 2003
Date of revision: Nov 2003
Publication status: Published in African Finance Journal 2.5(2003): pp. 44-62
Efficient market hypothesis; internet; online information; stock market; development indicators; Africa;
Find related papers by JEL classification:
- G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies
- O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- P. C. Kumar & George Tsetsekos, 1999. "The differentiation of 'emerging' equity markets," Applied Financial Economics, Taylor and Francis Journals, vol. 9(5), pages 443-453.
- Enisan, Akinlo A. & Olufisayo, Akinlo O., 2009. "Stock market development and economic growth: Evidence from seven sub-Sahara African countries," Journal of Economics and Business, Elsevier, vol. 61(2), pages 162-171.
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