Testing stock market efficiency in the weak form: Evidence from the Dow Jones Islamic indices

Market efficiency is one of the most controversial topics in the finance literature. Over the past four decades, academics and practitioners have widely examined the efficient market hypothesis (EMH) in conventional developed and developing financial markets. However, the limited number of studies on Islamic indices found within the literature stresses the need for additional scrutiny as to whether the claim of religious or moral Islamic principles may have led investors to make sacrifices in market efficiency. This thesis provides an empirical understanding for policy makers, investors, portfolio managers and researchers, whether individual or institutional, on Islamic investing in equity markets governed by Islamic laws.