THE IMPACT OF THE INSTITUTIONAL DETERMINANTS OF THE INFORMATION EFFICIENCY ON THE FINANCIAL MARKETS
Autor (i): Raluca, Bilti, Claudiu, Bilti
JEL: C11, D02, D6, D40, D53, G28, O43
Cuvinte cheie: efficiency, public institutions, quality, bayesian method
Abstract:
Our research is based on two pillars: the institutional quality and the information efficiency. We consider that there is a link between these two variables and they strongly influence each other. Both variables are unobservable, latent variables, and their measurement cannot be done directly, but through some estimators. Arguments such as portfolio management, capital flows, financial stability lead us to affirm that solving problems economically is not enough in order to have an efficient information market, and here comes the important role of the institutions that have to ensure quality. We aim to empirically test and present the link between the information efficiency index and the quality of the public institutions.
Our research is based on two pillars: the institutional quality and the information efficiency. We consider that there is a link between these two variables and they strongly influence each other. Both variables are unobservable, latent variables, and their measurement cannot be done directly, but through some estimators. Arguments such as portfolio management, capital flows, financial stability lead us to affirm that solving problems economically is not enough in order to have an efficient information market, and here comes the important role of the institutions that have to ensure quality. We aim to empirically test and present the link between the information efficiency index and the quality of the public institutions.
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