Inventi Impact: Emerging Economies
publication date: 2011/7/15

EFFECT OF POLICY REFORMS ON MARKET EFFICIENCY: EVIDENCE FROM DHAKA STOCK EXCHANGE
                  Md. Mahmudul Alam, Shakila Yasmin, Mahmudur Rahman, and Md. Gazi Salah Uddin

ABSTRACT
The paper tries to and 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.

Full Text