Testing weak-form efficiency of emerging economies: a critical review of literature

Due to the globalisation and mobilisation of capital markets, the concept of EMH is gaining a lot of importance in both developed and emerging economies. Most of the researches on the weak-form efficiency to date were based on the developed countries. The present study will seek to provide a comprehensive understanding of the weak-form efficiency in emerging economies. In terms of practical implications, the paper has direct implications for future research in EMH in particular emerging economies. The paper contributes in manly three ways: First, the paper collates and examines the broader and most effervescent literature and their findings. Second, it also presents a comprehensive, encompassing research work and a holistic view of various aspects of weak-form EMH. Finally, no studies have been conducted to date on a literature review of EMH weak-form efficiency in emerging economies. Nevertheless, the limitation of the study is that the findings are presented that may not be generalized to developed nations, which may be quite different in socio-cultural and political settings including the behavioral aspects of investors and the strength of the capital market.