Journal of Finance and Bank Management

Efficiency Level and Market Respond to Disclosed Information Examining Efficiency from Informational Point of View Study over Emerging Markets: Case of Karachi Stock Exchange
Umbareen Chaudhry, Faheem Shahid

Abstract
There is a great debate that how information signals pass through markets and how markets respond to those signals. Many researchers have worked on it but usually the work has been done in context of Developed markets. The study is important in nature as it unveils that how emerging markets process the publicly available information and how that information reflects in the stock prices. The study analyzes the relationship between value of stock calculated on the basis of earning per share and prevailing interest rate, and actual market value. KarachiStock Exchange has been taken as a case to analyze and results indicate that KarachiStock Exchange is a weak form of market, where information in the market has less significant impact over share prices.

Full Text: PDF     DOI: 10.15640/jfbm.v3n2a6