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Financial risk measurement for evaluating stock market efficiency

Project goals

The aim of the proposed project is to analyze various dimensions of financial risk in the context of capital markets, to empirically evaluate the importance of alternative risk proxies and to investigate what implications different ways of risk measurement have on tests of stock market efficiency. Efficient use of available information by capital markets and adequate assessment of relevant risks have profound consequences for eliminating economic waste. Existing research has shown that capturing risk israther complex and as a consequence stock markets often fail to adequately incorporate economic information into stock prices. The project analyzes how efficiently stock markets process economic information, it investigates to what extent the established risk proxies are universal, re-examines the methodology of assessing the quality of common risk proxies and proposes ways to improve financial risk measurement. The potential results from this project have important implications both for financial investors and for stock market regulators.

Keywords

financekapitálové trhyefektivitainformacerizikolikvidita

Public support

  • Provider

    Czech Science Foundation

  • Programme

    Post-graduate (doctorate) grants

  • Call for proposals

    Postdoktorandské granty 9 (SGA02009GA1PD)

  • Main participants

  • Contest type

    VS - Public tender

  • Contract ID

    402/09/P154

Alternative language

  • Project name in Czech

    Měření finančního rizika pro hodnocení efektivity kapitálových trhů

  • Annotation in Czech

    Cílem navrhovaného projektu je analyzovat dimenze finančního rizika na kapitálových trzích, empiricky vyhodnotit význam jednotlivých rizikových proměnných a zkoumat jaké jsou důsledky různých způsobů měření rizika pro testy efektivity kapitálových trhů.

Scientific branches

  • R&D category

    ZV - Basic research

  • CEP classification - main branch

    AH - Economics

  • CEP - secondary branch

  • CEP - another secondary branch

  • 50201 - Economic Theory
    50202 - Applied Economics, Econometrics
    50203 - Industrial relations
    50204 - Business and management
    50205 - Accounting
    50206 - Finance

Completed project evaluation

  • Provider evaluation

    U - Uspěl podle zadání (s publikovanými či patentovanými výsledky atd.)

  • Project results evaluation

    The project gone according to plan both in terms of expertise and in terms of disbursement of funds.

Solution timeline

  • Realization period - beginning

    Jan 1, 2009

  • Realization period - end

    Dec 31, 2011

  • Project status

    U - Finished project

  • Latest support payment

    Apr 16, 2011

Data delivery to CEP

  • Confidentiality

    S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

  • Data delivery code

    CEP12-GA0-GP-U/03:3

  • Data delivery date

    May 2, 2016

Finance

  • Total approved costs

    815 thou. CZK

  • Public financial support

    815 thou. CZK

  • Other public sources

    0 thou. CZK

  • Non public and foreign sources

    0 thou. CZK

Basic information

Recognised costs

815 CZK thou.

Public support

815 CZK thou.

100%


Provider

Czech Science Foundation

CEP

AH - Economics

Solution period

01. 01. 2009 - 31. 12. 2011