How Can We Determine the Informational Efficiency of Global Equity Markets?

For equity markets, the digital age means that information transfer and its impact on price are more important than ever. In this video, SÖHNKE M. BARTRAM explains how one goes about measuring the informational efficiency of international equity markets. Analyzing over 25,000 individual stocks from more than 36 countries, Bartram finds that the informational efficiency of global equity markets leaves much to be desired. Providing an important jumping-off point in the new nondiscretionary measure of fair value that he has developed, Bartram calls for further research to determine the most important drivers of equity returns in contemporary markets.