IDEAS home Printed from https://ideas.repec.org/a/cup/jinsec/v19y2023i4p459-477_1.html
   My bibliography  Save this article

Legal systems and stock market efficiency: an empirical analysis of stock indices around the world

Author

Listed:
  • Diniz-Maganini, Natalia
  • Rasheed, Abdul A.
  • Yaşar, Mahmut

Abstract

We examine whether the differences in the legal origins of countries (Common Law versus Civil Law) can explain the variations in the price efficiencies of the stock markets of different countries. Based on multifractal detrended fluctuation analysis of the daily stock indices of 34 countries over 21 years, we find that the stock price indices in Common Law origin countries show greater price efficiency than the stock price indices in Civil Law countries. These results provide additional evidence that the legal origins of countries affect their economic activities and outcomes.

Suggested Citation

  • Diniz-Maganini, Natalia & Rasheed, Abdul A. & Yaşar, Mahmut, 2023. "Legal systems and stock market efficiency: an empirical analysis of stock indices around the world," Journal of Institutional Economics, Cambridge University Press, vol. 19(4), pages 459-477, August.
    • Handle: RePEc:cup:jinsec:v:19:y:2023:i:4:p:459-477_1
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S174413742300005X/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:jinsec:v:19:y:2023:i:4:p:459-477_1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/joi .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.