Abstract
Abstract This study examines the weak-form efficiency of the Iranian capital market after changes in market regulations. Some events after 2005 have fundamentally changed the environment of the Iranian capital market, and we expect those reforms to increase its market efficiency. Therefore, this study examined the behavior of daily returns in Tehran Stock Exchange (TSE) utilizing autocorrelation and augmented Dickey-Fuller for the period of 2005-2013. The results of all the tests do not support that TSE daily returns follow a random walk. Therefore, we conclude that it is possible to use technical skills to attain abnormal gains.
Highlights
An efficient stock market is vital for economic development
The results indicate that stock prices in South Korea are consistent with the efficient market hypothesis
This study examined the Iranian capital market efficiency following changes in the market regulations which were expected to affect the stock market efficienncy
Summary
An efficient stock market is vital for economic development. Efficient stock markets encourage individuals to invest in stocks and help firm managers maximize the wealth of stockholders. The “market efficiency” hypothesis was developed by Fama (1970) in his original work. He considered the informational efficiency of financial markets and stated that there is no opportunity for an investor to outperform the market since all available information is already reflected in stock prices. The efficient market hypothesis has been one of the most intensely researched topics in previous decades and continues to be a topic that has both
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
