Market Efficiency Hypothesis Application in the Czech Republic – the FOREX Case

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F26441021%3A_____%2F19%3AN0000005" target="_blank" >RIV/26441021:_____/19:N0000005 - isvavai.cz</a>

Výsledek na webu

<a href="https://msed.vse.cz/msed_2019/article/2-Makovsky-Petr-paper.pdf" target="_blank" >https://msed.vse.cz/msed_2019/article/2-Makovsky-Petr-paper.pdf</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.18267/pr.2019.los.186.103" target="_blank" >10.18267/pr.2019.los.186.103</a>

Jazyk výsledku

angličtina

Název v původním jazyce

Market Efficiency Hypothesis Application in the Czech Republic – the FOREX Case

Popis výsledku v původním jazyce

The Market Efficiency Hypothesis (MEH) in its weak form assumes that stock prices already reflect all the available past information. In the other words in the absence of the new information stock should remain unchanged. It is impossible to achieve abnormal long-term returns. More the technical analysis seems to be useless in contrary with the fundamental analysis. It is necessary to say that the MEH is an essential part of rational economics. The MEH hypothesis is opposite to the behavioural finance approach. It is very interesting to observe the increasing interest in the behavioural finance despite the stable primary approach in the MEH hypothesis. In this paper, we demonstrate on the data sample of the Czech FOREX market verification/falsification of the MEH. We run analysis more than ten years from the Great Financial Crisis (GFC) in the 2008 (Lehman Brothers Crash). Now there are many signals for the further recession or other phenomena fur from equilibrium (overheated economy, inefficient labour market, bubbles etc.). Need to say that rational economics is equilibrium economics and do not expect disequilibrium. In our analysis, we provide clear answers on the questions about useless of the technical analysis, market efficiency, stock market regulation and other important problems of financial economics in the 21st century.

Název v anglickém jazyce

Market Efficiency Hypothesis Application in the Czech Republic – the FOREX Case

Popis výsledku anglicky

The Market Efficiency Hypothesis (MEH) in its weak form assumes that stock prices already reflect all the available past information. In the other words in the absence of the new information stock should remain unchanged. It is impossible to achieve abnormal long-term returns. More the technical analysis seems to be useless in contrary with the fundamental analysis. It is necessary to say that the MEH is an essential part of rational economics. The MEH hypothesis is opposite to the behavioural finance approach. It is very interesting to observe the increasing interest in the behavioural finance despite the stable primary approach in the MEH hypothesis. In this paper, we demonstrate on the data sample of the Czech FOREX market verification/falsification of the MEH. We run analysis more than ten years from the Great Financial Crisis (GFC) in the 2008 (Lehman Brothers Crash). Now there are many signals for the further recession or other phenomena fur from equilibrium (overheated economy, inefficient labour market, bubbles etc.). Need to say that rational economics is equilibrium economics and do not expect disequilibrium. In our analysis, we provide clear answers on the questions about useless of the technical analysis, market efficiency, stock market regulation and other important problems of financial economics in the 21st century.

Druh

D - Stať ve sborníku

CEP obor

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OECD FORD obor

50202 - Applied Economics, Econometrics

Projekt

—

Návaznosti

N - Vyzkumna aktivita podporovana z neverejnych zdroju

Rok uplatnění

2019

Kód důvěrnosti údajů

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

Název statě ve sborníku

International Days of Statistics and Economics

ISBN

978-80-87990-18-6

ISSN

—

e-ISSN

—

Počet stran výsledku

11

Strana od-do

1033-1043

Název nakladatele

Vysoká škola ekonomická

Místo vydání

Praha

Místo konání akce

Praha

Datum konání akce

5. 9. 2019

Typ akce podle státní příslušnosti

EUR - Evropská akce

Kód UT WoS článku

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