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Economics Research International
Volume 2011 (2011), Article ID 864940, 8 pages
http://dx.doi.org/10.1155/2011/864940
Research Article

Effect of Policy Reforms on Market Efficiency: Evidence from Dhaka Stock Exchange

1Institute for Environment and Development (LESTARI), The National University of Malaysia (UKM), Bangi, 43600 Selangor, Malaysia
2Integrated Education and Research Foundation, 41/2 Purana Paltan, Dhaka 1000, Bangladesh
3Institute of Business Administration, University of Dhaka, Dhaka 1000, Bangladesh
4The Institute of Chartered Accountants of Bangladesh, 100 Kazi Nazurl Islam Avenue, Dhaka 1215, Bangladesh
5Department of Business Administration, East-West University, 43, Mohakhali, Dhaka-1212, Bangladesh

Received 9 December 2010; Accepted 19 January 2011

Academic Editor: Colin C. Williams

Copyright © 2011 Md. Mahmudul Alam et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

The paper tries to find evidence supporting the impact of continuous policy reforms on the market efficiency on the Dhaka Stock Exchange (DSE). Different policies formed/reformed from 1994 to 2005 were categorized in eleven groups depending on their time of issue and subject matter. To get the result, both nonparametric test (Kolmogrov-Smirnov normality test and run test) and parametric test (autocorrelation test, autoregression) have been performed. Analyses were done for each policy group, and it is found that formed/reformed policies for DSE during the study period failed to improve the market efficiency even in the weak form level.