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Testing the weak-form efficiency of Vietnam stock market An empirical analysis

초록/요약

The existence of weak-form efficiency in the Vietnamese stock market is examined for the March 4, 2002 to February 24, 2009 period using daily data from the VN index and ten stocks based on the SSI-30 Index1. This paper employs the nonparametric method to assess the predictability of the return time series using both observed data and corrected data2. Kolmogorov-Smirnov goodness of fit test shows that the returns of the VN index and stocks do not follow normal distribution. The Unit root test results indicate that all stock returns are stationary. The Runs test provides evidence of the weak-form inefficiency of the Vietnamese stock market. As a result, it is possible for investors to obtain abnormal stock returns by taking advantage of the day of the week effect. Keywords: Vietnamese stock market, efficient market hypothesis.

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