Bank efficiency and the efficient market hypothesis: the case for bank stock prices in KLSE
The purpose of the present study is to investigate the informationally efficient market hypothesis of the bank stock prices listed at the KLSE with respect to bank's operating efficiency. In this study, using data envelopment analysis technique, we compute the overall technical efficiency and d...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
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Giordano Dell-Amore Foundation
2005
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| Online Access: | http://psasir.upm.edu.my/id/eprint/8797/1/Bank%20efficiency%20and%20the%20efficient%20market%20hypothesis.pdf |
| _version_ | 1796967602326601728 |
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| author | Habibullah, Muzafar Shah Makmur, Muhd Iqbal Wan Ngah, Wan Azman Saini Radam, Alias Ong, Hway Boon |
| author_facet | Habibullah, Muzafar Shah Makmur, Muhd Iqbal Wan Ngah, Wan Azman Saini Radam, Alias Ong, Hway Boon |
| author_sort | Habibullah, Muzafar Shah |
| collection | UPM |
| description | The purpose of the present study is to investigate the informationally efficient market hypothesis of the bank stock prices listed at the KLSE with respect to bank's operating efficiency. In this study, using data envelopment analysis technique, we compute the overall technical efficiency and decomposed it into pure technical efficiency, scale efficiency and congestion efficiency. We found out that the percentage changes in the prices of the bank shares at the KLSE reflect percentage changes in the overall technical efficiency but not to the pure technical, scale and congestion efficiencies scores. We therefore, conclude that the Malaysia's bank stock return is price inefficient in the semi-strong form sense.
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| first_indexed | 2024-03-06T07:16:17Z |
| format | Article |
| id | upm.eprints-8797 |
| institution | Universiti Putra Malaysia |
| language | English |
| last_indexed | 2024-03-06T07:16:17Z |
| publishDate | 2005 |
| publisher | Giordano Dell-Amore Foundation |
| record_format | dspace |
| spelling | upm.eprints-87972018-02-19T08:46:38Z http://psasir.upm.edu.my/id/eprint/8797/ Bank efficiency and the efficient market hypothesis: the case for bank stock prices in KLSE Habibullah, Muzafar Shah Makmur, Muhd Iqbal Wan Ngah, Wan Azman Saini Radam, Alias Ong, Hway Boon The purpose of the present study is to investigate the informationally efficient market hypothesis of the bank stock prices listed at the KLSE with respect to bank's operating efficiency. In this study, using data envelopment analysis technique, we compute the overall technical efficiency and decomposed it into pure technical efficiency, scale efficiency and congestion efficiency. We found out that the percentage changes in the prices of the bank shares at the KLSE reflect percentage changes in the overall technical efficiency but not to the pure technical, scale and congestion efficiencies scores. We therefore, conclude that the Malaysia's bank stock return is price inefficient in the semi-strong form sense. Giordano Dell-Amore Foundation 2005 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/8797/1/Bank%20efficiency%20and%20the%20efficient%20market%20hypothesis.pdf Habibullah, Muzafar Shah and Makmur, Muhd Iqbal and Wan Ngah, Wan Azman Saini and Radam, Alias and Ong, Hway Boon (2005) Bank efficiency and the efficient market hypothesis: the case for bank stock prices in KLSE. Savings and Development, 29 (4). pp. 363-390. ISSN 0393-4551 |
| spellingShingle | Habibullah, Muzafar Shah Makmur, Muhd Iqbal Wan Ngah, Wan Azman Saini Radam, Alias Ong, Hway Boon Bank efficiency and the efficient market hypothesis: the case for bank stock prices in KLSE |
| title | Bank efficiency and the efficient market hypothesis: the case for bank stock prices in KLSE |
| title_full | Bank efficiency and the efficient market hypothesis: the case for bank stock prices in KLSE |
| title_fullStr | Bank efficiency and the efficient market hypothesis: the case for bank stock prices in KLSE |
| title_full_unstemmed | Bank efficiency and the efficient market hypothesis: the case for bank stock prices in KLSE |
| title_short | Bank efficiency and the efficient market hypothesis: the case for bank stock prices in KLSE |
| title_sort | bank efficiency and the efficient market hypothesis the case for bank stock prices in klse |
| url | http://psasir.upm.edu.my/id/eprint/8797/1/Bank%20efficiency%20and%20the%20efficient%20market%20hypothesis.pdf |
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