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A Critical Theoretical Analysis On The Implications Of Efficient Market Hypothesis (Emh)

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  • MINEA ELENA LOREDANA

    (UNIVERSITY OF CRAIOVA, FACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION, ROMANIA)

Abstract

The main aim of this article is to provide a critical but complex theoretical framework regarding Efficient Market Hypothesis (EMH). Efficient Market Hypothesis is considered the centerpiece of modern financial theory. This paradigm represented a significant progress in the investment area. However, it also has generated various criticisms and controversies. Empirical evidence rejected the existence of stock market efficiency in most cases, in particular semi-strong form and strong form of efficiency. Numerous research studies have investigated the practical applicability of Efficient Market Hypothesis. However, this theory still generates various controversies and polemics at the theoretical level.

Suggested Citation

  • Minea Elena Loredana, 2019. "A Critical Theoretical Analysis On The Implications Of Efficient Market Hypothesis (Emh)," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 6, pages 298-303, December.
    • Handle: RePEc:cbu:jrnlec:y:2019:v:6:p:298-303
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    References listed on IDEAS

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