Efficient Market Hypothesis; Empirical Study

Working Title

Succinct/informative title

Applying Efficient Market Hypothesis (EMH) to UK & US; Case of trump and Brexit.

Basic Research Question

IN one sentence, define the key features of the research question.

Testing of efficient market hypothesis by looking at 2 events to confirm whether markets are actually efficient.

Key paper(s)

Identify the key academics papers which currently underpin the topic (3 papers max )

Efficient Capital Markets: A review of theory and empirical work

http://www.jstor.org/stable/pdf/2325486.pdf?refreqid=excelsior%3Adbaa3818313577e6b67b7877140862ef

Event Studies in Economics and Finance

http://www.bu.edu/econ/files/2011/01/MacKinlay-1996-Event-Studies-in-Economics-and-Finance.pdf

The efficient market hypothesis: problems with interpretations of empirical tests

https://hrcak.srce.hr/file/116381

Motivation/Puzzle/Problem

Capture your core academic motivation, Identifying the “puzzle”, “paradox” or “problem” you hope to resolve and “core” idea that drives the intellectual content of this research topic.

Hope to provide empirical evidence suggesting that the markets are efficient and consistent with Fama’s theory.

Why is it important to know the answer?

How will major decisions/behaviour/activity etc be influenced by the outcome of this research?

The efficient market hypothesis is a fundamental concept in corporate finance, however there is a lack of literature not only on whether the hypothesis stands true but also comparing the efficiency of two of the markets (London Stock Exchange and New York Stock Exchange). The outcome of this research will hopefully provide evidence as to whether Fama’s hypothesis still holds true to this day.