Evaluation the efficiency and effectiveness of the Iraq stock exchange : an empirical study from July 2004 to March 2008

Abstract EN

The aim of this study was to provide an overall assessment to the efficiency of the Iraq stocks exchanges (ISE) through specifying well-known models.

First, Fame's efficient market hypothesis as a contrary concept to the random walk hypothesis, was performed and it has been found that ISE follows the random process, so the price of the shares can't be predicated on the basis of past information.

Second, we use a multifactor model, which so named multiple regression, to explore the link between ISE and the main economic indicators.

Our empirical analysis finds that every weak associations exists between major ISE measures and main economic indicators.