Adaptive market hypothesis: insights from BRIC-T countries’ stock markets
Comparing the Efficient Market Hypothesis and Behavioral Finance, the Adaptive Markets Hypothesis (AMH), which identifies the extremes of these two hypotheses and adapts them to each other, argues that calendar anomalies can coexist, but also focuses on how investor behavior reacts to changing marke...
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| Format: | Article |
| Language: | English |
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Sciendo
2025-06-01
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| Series: | Financial Internet Quarterly |
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| Online Access: | https://doi.org/10.2478/fiqf-2025-0010 |
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| author | Ozekenci Sureyya Yilmaz |
| author_facet | Ozekenci Sureyya Yilmaz |
| author_sort | Ozekenci Sureyya Yilmaz |
| collection | DOAJ |
| description | Comparing the Efficient Market Hypothesis and Behavioral Finance, the Adaptive Markets Hypothesis (AMH), which identifies the extremes of these two hypotheses and adapts them to each other, argues that calendar anomalies can coexist, but also focuses on how investor behavior reacts to changing market conditions. This study aims to investigate whether the stock markets of BRIC-T countries are consistent with the AMH, including crisis periods, using daily data for the period 01.01.2000-31.12.2023. To this end, daily index return series of each country were constructed and analyzed with the help of Wild-bootstrap Variance ratio test, BDS test and Ljung and Box Q Portmanteau tests. According to the Wild-bootstrap Variance ratio test, both EMH and AMH are not valid in the equity markets of BRIC-T countries; according to the BDS test results, AMH is valid and according to the Ljung and Box Q Portmanteau test results, AMH is valid. Therefore, it is concluded that AMH is more successful than EMH in explaining the equity markets of BRIC-T countries. |
| format | Article |
| id | doaj-art-da27fd08f07f40e782a72d6c73fff1b9 |
| institution | DOAJ |
| issn | 2719-3454 |
| language | English |
| publishDate | 2025-06-01 |
| publisher | Sciendo |
| record_format | Article |
| series | Financial Internet Quarterly |
| spelling | doaj-art-da27fd08f07f40e782a72d6c73fff1b92025-08-20T03:15:10ZengSciendoFinancial Internet Quarterly2719-34542025-06-01212336310.2478/fiqf-2025-0010Adaptive market hypothesis: insights from BRIC-T countries’ stock marketsOzekenci Sureyya Yilmaz01Vocational School, Çağ University, TürkiyeComparing the Efficient Market Hypothesis and Behavioral Finance, the Adaptive Markets Hypothesis (AMH), which identifies the extremes of these two hypotheses and adapts them to each other, argues that calendar anomalies can coexist, but also focuses on how investor behavior reacts to changing market conditions. This study aims to investigate whether the stock markets of BRIC-T countries are consistent with the AMH, including crisis periods, using daily data for the period 01.01.2000-31.12.2023. To this end, daily index return series of each country were constructed and analyzed with the help of Wild-bootstrap Variance ratio test, BDS test and Ljung and Box Q Portmanteau tests. According to the Wild-bootstrap Variance ratio test, both EMH and AMH are not valid in the equity markets of BRIC-T countries; according to the BDS test results, AMH is valid and according to the Ljung and Box Q Portmanteau test results, AMH is valid. Therefore, it is concluded that AMH is more successful than EMH in explaining the equity markets of BRIC-T countries.https://doi.org/10.2478/fiqf-2025-0010efficient market hypothesisbehavioral financethe adaptive markets hypothesiso15d53 |
| spellingShingle | Ozekenci Sureyya Yilmaz Adaptive market hypothesis: insights from BRIC-T countries’ stock markets Financial Internet Quarterly efficient market hypothesis behavioral finance the adaptive markets hypothesis o15 d53 |
| title | Adaptive market hypothesis: insights from BRIC-T countries’ stock markets |
| title_full | Adaptive market hypothesis: insights from BRIC-T countries’ stock markets |
| title_fullStr | Adaptive market hypothesis: insights from BRIC-T countries’ stock markets |
| title_full_unstemmed | Adaptive market hypothesis: insights from BRIC-T countries’ stock markets |
| title_short | Adaptive market hypothesis: insights from BRIC-T countries’ stock markets |
| title_sort | adaptive market hypothesis insights from bric t countries stock markets |
| topic | efficient market hypothesis behavioral finance the adaptive markets hypothesis o15 d53 |
| url | https://doi.org/10.2478/fiqf-2025-0010 |
| work_keys_str_mv | AT ozekencisureyyayilmaz adaptivemarkethypothesisinsightsfrombrictcountriesstockmarkets |