Empirical Examination of the Weak Form of Efficient Market Hypothesis: Insights from the Bahrain Bourse

Financial markets are said to be "informationally efficient" according to the efficient market hypothesis (EMH), which implies that current prices accurately represent all available information.The current study attempts to evaluate the Bahrain Bourse's individual stocks' inferior form of market efficiency from 2011 to 2015.The Kolmogorov-Smirnov goodness of fit test, run test, and autocorrelation test are used to evaluate the weak form of EMH.In general, the stock price movement does not follow random walk, according to the K-S test result.The results of the runs test show that seven different firms share prices do not follow a random walk.According to autocorrelation studies, the share prices indicate low to moderate correlation, with values ranging from negative to positive.As the study's findings are inconsistent, it is challenging to draw firm conclusions about Bahrain Bourse's efficiency.