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Globalization and stock market efficiency

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  • Acikgoz, Turker

Abstract

This study investigates the impact of globalization and its sub-dimensions on stock market efficiency across emerging and advanced economies. By using the Market Efficiency Index derived from multifractal detrended fluctuation analysis (MF-DFA), the findings reveal that globalization significantly reduces market efficiency, particularly in emerging markets. Economic, political, and social-related globalization dimensions are identified as key drivers of inefficiency. In contrast, advanced markets appear largely unaffected by globalization forces. The results provide important implications for policymakers and investors regarding the integration of financial markets into the global economy.

Suggested Citation

  • Acikgoz, Turker, 2025. "Globalization and stock market efficiency," Finance Research Letters, Elsevier, vol. 85(PC).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pc:s1544612325012139
    DOI: 10.1016/j.frl.2025.107955
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    References listed on IDEAS

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