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The Steel European Stock Market Efficiency

Author

Listed:
  • Viorica CHIRILA

    (Associate Professor, Alexandru Ioan Cuza University of Iasi, Romania)

  • Ciprian CHIRILA

    (Associate Professor, Alexandru Ioan Cuza University of Iasi, Romania)

Abstract

Testing the hypothesis of informational efficiency is a permanent preoccupation of researchers because the theories and the models of modern finance are based on it. This paper presents the results obtained after testing the efficiency hypothesis, in the weak form, for the European stock market of the companies that belong to the economic steel sub-sector. Following the use of both linear and non-linear tests of autocorrelation of returns we can conclude that the European stock market in the economic steel sub-sector is inefficient from an informational point of view and the investors in these stocks may obtain better results than those of the European market in general.

Suggested Citation

  • Viorica CHIRILA & Ciprian CHIRILA, 2015. "The Steel European Stock Market Efficiency," CES Working Papers, Centre for European Studies, Alexandru Ioan Cuza University, vol. 7(4), pages 873-880, December.
  • Handle: RePEc:jes:wpaper:y:2015:v:7:i:4:p:873-880
    as

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    File URL: http://www.ceswp.uaic.ro/articles/CESWP2015_VII4_CHI.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    steel & iron subsector; stock; return; BDS test; Runs test;
    All these keywords.

    JEL classification:

    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • C58 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Financial Econometrics

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