Munich Personal RePEc Archive

ROMANIAN CAPITAL MARKET AND THE INFORMATIONAL EFFICIENCY

Dima, Bogdan and Barna, Flavia and Pirtea, Marilen (2007): ROMANIAN CAPITAL MARKET AND THE INFORMATIONAL EFFICIENCY.

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Abstract

Many financial studies are based on the efficient capital markets hypothesis. In this context, testing the existence of this concept becomes an interesting field of study for the emerging capital market. The aim of this paper is to enlighten the difficulties of portfolio construction in a capital market with institutional and structural deficiencies, like the Romanian one, and to propose an alternative approach to the problem. The main features of our analysis are an empirical test for the efficient market hypothesis in the Romanian capital market case. The output of this approach could be resumed by the thesis that, even in a situation when the capital market is affected by severe dysfunctions, there is a possibility to build an "optimal" portfolio.

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