Systematic Literature Review of Market Efficiency in Emerging Markets

Yuliana  M; Andi Batari Annisa  Maknun; Abdul Hamid  Habbe; Nadhirah  Nagu

doi:10.55927/mudima.v4i7.10131

Authors

Yuliana M Faculty of Business and Economics, Hasanuddin University
Andi Batari Annisa Maknun Faculty of Business and Economics, Hasanuddin University
Abdul Hamid Habbe Faculty of Business and Economics, Hasanuddin University
Nadhirah Nagu Faculty of Business and Economics, Hasanuddin University

DOI:

https://doi.org/10.55927/mudima.v4i7.10131

Keywords:

Market, Efficienncy, Emerging Markets

Abstract

This research examines market efficiency in emerging markets through a systematic literature review. Market efficiency, in the context of finance theory, is a condition in which asset prices fully reflect all available information. In emerging markets, achieving efficiency is often constrained by a number of factors. This research finds that emerging markets are generally only able to achieve weak-form efficiency, where prices reflect historical information but fail to fully reflect public or private information quickly and accurately. Limitations in transparency, weak regulation, and insider trading practices hinder the achievement of semi-strong and strong form efficiency. In addition, market anomalies such as price deviations from fundamental values are often found, caused by unstable and asymmetric information distribution

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