The Efficient Market Hypothesis—A Discussion of Institutional, Agency and Behavioural Issues

Robert G. Bowman and John Buchanan
Additional contact information
Robert G. Bowman: Department of Accounting and Finance, University of Auckland, Private Bag 92019, Auckland, New Zealand.
John Buchanan: School of Management Studies, University of Waikato, Private Bag 3105, Hamilton, New Zealand.

Australian Journal of Management, 1995, vol. 20, issue 2, 155-166

Abstract: The efficient market hypothesis is an elegant economic concept which has been extensively researched. The results of the research are broadly supportive of the concept for developed and competitive securities markets. Yet many, perhaps even most corporate executives and investors have serious reservations about or even reject market efficiency. Why? We argue that there are reasons to expect that, in general, people will systematically underestimate the level of efficiency in a market or of a security. We develop this position and group the discussion into market structure reasons and behavioural reasons.

Keywords: EFFICIENT MARKET HYPOTHESIS; BEHAVIOURAL ECONOMICS (search for similar items in EconPapers)
Date: 1995
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/031289629502000203 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:ausman:v:20:y:1995:i:2:p:155-166

DOI: 10.1177/031289629502000203

Access Statistics for this article

More articles in Australian Journal of Management from Australian School of Business
Bibliographic data for series maintained by SAGE Publications ().