Question

Use your own works to explain the efficient market hypothesis, in your explanation, you need to provide academic references in suitable formattin. Whcich form of market efficiency is the most important to accounting research? Why?

Answer 1

The EMH in the semi-strong form is the most interesting form for accounting research because the substantial part of public information is accounting data and so every reference in this paper relating to market efficiency relates to the semi-strong form.

The major results are that the EMH is valid for the semi-strong form, which is the most important type for financial accounting. Because there is only evidence for the semi-strong division and not for the strong there is always an opportunity of inefficiency..