Stock Market Efficiency: An Institutional Approach

Abstract

In this study the institutional approach is used to analyze the issues of stock market efficiency. Until now corporate finance theory, primarily based on the neoclassical methodology, has viewed the issue of the stock market efficiency only as a problem of information function of stock market prices. In this study we present another view that the efficiency of stock market is the efficiency of market institutions functioning and especially of its regulative institutions. Such an approach seems to be up-to-date in the context of analysis of the emerging markets experience including the Russian case where the market and regulative institutions are still in the process of forming.