Identifying and Evaluating Weak-Form Efficiency Barriers of Tehran Stock Exchange Using BSC and MADM Techniques

Authors

1 D o c t o r o f b u s i n e s s m a n a g e m e n t ( D .B . M .), Puna University of India, Assistant professor, faculty member of economic sciences, management and accounting, University of Yazd

2 D.B.M, Puna University of India, faculty member of economic sciences, management and accounting, University of Yazd

3 Corresponding author, D.B.M. University of Yazd

Abstract

Capital market efficiency is an important concept, in terms of
economic growth and development. The efficiency of the emerging
markets assumes greater importance as the trend of investments is
accelerating in these markets as a result of regulatory reforms and
removal of other barriers for the international equity investments.
According to previous study results that show inefficiency of Tehran
stock exchange, investigation of Weak-Form Efficiency Barriers of
this capital market will help identify existing limitations, reform
future courses of action and eventually promote market efficiency.
Therefore, the present research endeavors to study the Weak-Form
Efficiency Barriers of Tehran stock exchange and to offer strategies
towards improving efficiency and removing barriers. The study
method is descriptive-analytical and data gathering is on the basis of
literature and case study. In this study, we identified the effective
barriers of weak-form efficiency using Delphi method and factor analysis. Thus, the factors which prevent Tehran stock exchange,
albeit within BSC four dimensions, from attaining its strategic goals
were recognized as barriers of weak-form efficiency. For ranking of
the barriers importance, we applied some MADM techniques such as
AHP and TOPSIS. We found that, generally, the barriers on the four
dimensions of BSC have a significant effect on capital market weakform
efficiency. In addition, findings of this study suggest that
internal process perspective factors are the main barriers in Tehran
stock exchange weak-form efficiency. Also, finally, suggestions
meant for improvement and promotion of stock exchange have been
given.

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