Sequential Supply Decision and Market Efficiency: Theory and Evidence

2017 ◽  
Author(s):  
In Kyung Kim ◽  
Yoon-Jin Lee ◽  
YounggRo Yoon
Keyword(s):  
Market Efficiency ◽  
Efficiency Theory

scholarly journals Reaksi saham perbankan terhadap penurunan BI rate April 2016 dan implikasinya terhadap strategi investasi: pengujian terhadap hipotesis pasar efisien

2018 ◽  
Vol 6 (1) ◽  
pp. 9
Author(s):  
Triyaryati N ◽  
Kusumadewi NMW
Keyword(s):  
Interest Rate ◽  
Market Efficiency ◽  
Stock Prices ◽  
Stock Price ◽  
Abnormal Return ◽  
Banking Sector ◽  
Relevant Information ◽  
Investment Strategy ◽  
Rate Policy ◽  
Efficiency Theory

Stagnation of BI Rate during year 2015 on 7.5% level, causing a profit growth deceleration and stock price compulsion in banking sector. BI rate and BI 7-Day Repo Rate policy announcement on April 21st 2016 is a new relevant information for banking sector in Indonesia. Because both are as an interest rate reference for determining deposit and landing interest rate, which directly related to banking sector profit and expenses. This study verify an abnormal return existence during the announcement, in order to observe the market ability to directly absorb the relevant information and reflected in the stock price of the banking sector. The procedures which run in this study is also to test the market efficiency theory in the semi strong form.This study indicate that during the observation period there is no existence of abnormal return, which is show that the market are directly absorb the new relevant information and reflected it in the stock prices. Thus the market indicate as semi strong efficient.Investor decision making implication refer to this study result is there will not be an optimal return for them if they applied an active investment strategy during this period.So, in this semi strong market efficiency situation, it is better for the investor not to apply the active investment strategy.

scholarly journals The Double-Trump Decision Management Model in Global Exchange

Ekonomika ◽  
2005 ◽  
Vol 72 ◽  
Author(s):  
Aleksandras Vytautas Rutkauskas
Keyword(s):  
Market Efficiency ◽  
Investment Decision ◽  
Management Model ◽  
Decision Strategy ◽  
Currency Market ◽  
Decision Management ◽  
Efficiency Theory ◽  
Forecasting System ◽  
Real Market ◽  
Global Exchange

The main goal of the article is to reveal the content of the so-called “double trump” decision management model in the global currency market and to present possibilities and results of its practical application. This model is developed on the basis of the author’s earlier proposed model of adequate investment decision evaluation portfolio, and it was experimentally implemented with the aid of a special currency rate change forecasting system using the FOREX global currency rate market data. The investigation was carried out using real FOREX data for the period from 11 December 2004 to 10 October 2005.The conceptual aim of the article is to broaden the discussion about financial market efficiency by testing market efficiency theory not through an attempt to defeat the market. but through proving market homogeneity, i.e. proving that there are always non-efficiency shoals in the market. when it is possible to elaborate a decision strategy allowing an advantage over the real market decisions over a rather long period of time.The pragmatic aim of the research is to find the possibilities and means of decision management in the currency market strategies advantageous over particular market decisions in general. Continuous development and practical use of such strategies should help in forming market intelligence.

Market Efficiency in an Irrational World

CFA Digest ◽  
2000 ◽  
Vol 30 (3) ◽  
pp. 58-59
Author(s):  
Roger Ignatius
Keyword(s):  
Market Efficiency

Does Enhancing of the Competitiveness Influence on Foreign Direct Investments in Western Balkan Countries?

2016 ◽  
Vol 1 (2) ◽  
pp. 164 ◽  
Author(s):  
Matea Zlatković
Keyword(s):  
Market Efficiency ◽  
Foreign Direct Investments ◽  
Global Competitiveness ◽  
Technological Readiness ◽  
Regional Market ◽  
National Competitiveness ◽  
Good Market ◽  
World Economic ◽  
Global Competitiveness Index ◽  
Per Capita

Foreign direct investments present a valuable source of national competitiveness as they have attributes of capital flows provide knowledge and technology transfer from one country to target country. In this paper are used variables defined by World Economic Forum which construct Global Competitiveness Index for assessing competitiveness of the country. The purpose of the research is to examine does the national competitiveness increase enhance the level of FDI flows in transition Western Balkan economies that are not yet full members of European Union. The findings claim that larger increase in FDI per capita stocks in majority analyzed countries would have if making infrastructure more competitiveness, accelerate their technological readiness and improve innovation while certain countries should work on health and primary education and higher education and training. According to the results, there is no correlation between FDI flows and macroeconomic environment, institutions, development of financial markets, good market efficiency, labor market efficiency and business sophistication. Applying benchmark method, it is established the most competitive WB country as benchmark value for other transition countries in its neighborhood for enhancing their competitiveness, specially in the regional market. Also, it is obtained what if analysis to detect potential rise of FDI per capita stocks as a consequence of potential changes in some competitiveness variables. It is also calculated the potential increase in FDI/capita due to similar changes in different competitiveness variables.

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