Social and Behavioral Sciences Commons^™

How Efficient Are Africa’S Emerging Stock Markets?, Magnus Arni Magnusson, Bruce Wydick

Economics

The development of financial institutions has been viewed in recent years as critical to the economic development process. This research uses recent data from the eight largest African stock markets to test whether these markets meet the criterion of weak-form stock market efficiency with returns characterised by a random walk. Results are then compared with similar tests on emerging stock markets in Southeast Asia and Latin America. Conclusions from the research indicate that test results for weak-form efficiency in the emerging African stock markets compare favorably with those performed on other emerging stock markets.