Ranking World Equity Markets on the Basis of Market Efficiency and Integrity
THE HP HANDBOOK OF WORLD STOCK, DERIVATIVE & COMMODITY EXCHANGES 2003, Herbie Skeete, ed., pp. xlix-lv, Mondo Visione Ltd., 2003
25 Pages Posted: 1 Feb 2004
Abstract
This study ranks twenty-five world equity markets from the North American, European, Middle-eastern and Asia-Pacific regions on the twin objectives of market efficiency and integrity. Though rhetoric from the chosen markets suggest that these are equally important goals we find evidence that their importance varies significantly across markets. The key findings of the study are that the Deustche Boerse and the New York Stock Exchange stand out among their international peers as markets of high efficiency and integrity. Notwithstanding the performance of these markets, European markets hold eight of the top ten places while the top three Asia-Pacific markets are New Zealand, Tokyo and Hong Kong exchanges ranked 11th, 12th and 14th respectively. While the Deutsche Boerse - floor trading in Frankfurt, holds the mantel as the market with the highest integrity, its ranking on efficiency is much lower at 14th. This is symptomatic of a more pervasive result, namely, that efficient markets are not necessarily markets with higher integrity and vice versa. Euronext Paris which is ranked 2nd on efficiency is only ranked 19th on integrity is evidence of the latter. Given the disparity between the two goals, scope appears to exist for international alliances among securities markets with the objective of enhancing one or the other goal.
Keywords: Market Efficiency, Market Integrity, Manipulation
JEL Classification: G10, G14
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Insider Trading Restrictions and Analysts' Incentives to Follow Firms
By Robert M. Bushman, Joseph D. Piotroski, ...
-
Public and Private Enforcement of Securities Laws: Resource-Based Evidence
By Howell E. Jackson and Mark J. Roe
-
By Arturo Bris
-
When No Law is Better than a Good Law
By Utpal Bhattacharya and Hazem Daouk
-
When No Law is Better Than a Good Law
By Utpal Bhattacharya and Hazem Daouk
-
Insider Trading Laws and Stock Price Informativeness
By Nuno Fernandes and Miguel A. Ferreira
-
Do Insider Trading Laws Matter? Some Preliminary Comparative Evidence
-
Do Insider Trading Laws Matter? Some Preliminary Comparative Evidence