Efficiency and transparency effects on Eastern European financial markets

Autor: Victoria Paimanova, Giuseppe Galloppo
Rok vydání: 2017
Předmět:
Zdroj: International Economics and Economic Policy. 15:185-213
ISSN: 1612-4812
1612-4804
DOI: 10.1007/s10368-017-0372-8
Popis: The negative effect of financial crises on the emerging financial markets of Eastern Europe grew stronger due to a lack of transparency and low market efficiency. For this reason, our research focuses on transparency and efficiency measures with correlation to liquidity and volatility to gauge stock price reaction during two financial crises periods. Our findings revealed a very chaotic picture of the market and the presence of uncontrolled development. As it turned out, Eastern European financial markets did not meet our expectations regarding transparency, liquidity and risk. Hence, it calls into question the soundness of the rule of law, which raises doubts among investors. Our results demonstrated that Eastern European countries tend not to be characterized by transparency, which leads to limited market information and a greater likelihood of low-level stock market efficiency in terms of the Fama approach.
Databáze: OpenAIRE
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