The market efficiency during and after the financial crisis : A study based on the efficiency of the Nordic countries

The efficient market hypothesis is about if available information are reflected in the stock price and that it should be impossible to predict the market and make abnormal returns. This is a quantitative study which aim to investigate if there is any difference in market efficiency on Nordic stock markets during and after the financial crisis of 2008. By applying GARCH, Durbin-Watson test and unit root test for independency, on the returns of a stock market index from each country the authors try to find evidence for and against the weak form of market efficiency. The study finds evidence both for and against weak form market efficiency but concludes that there is no difference in type of market efficiency during and after the financial crisis