Presidential Scholars Theses (1990 – 2006)


Open Access Presidential Scholars Thesis

First Advisor

Lyle Bowlin, Advisor


Stock exchanges; Stocks--Prices; Economic indicators;


The concept of market efficiency is a widely known and researched concept. The profit motive present in the market combined with advancements in trading technology and company knowledge have practically eliminated mispricing in equity markets. However, the limited number of hours of trading present in stock exchanges of the United States generates the potential for a certain amount of inefficiency. This inefficiency results from the inability of various stock markets to process certain types of public information because of the timing of its arrival in relation to the operating hours of the market. This paper will outline the process followed to investigate this concept and then describe the future implications of technological and deregulatory trends. Specifically, this paper will: explain the concepts of stock market price behavior and the three forms of market efficiency, describe the research process used to develop the model, research the stocks and economic indicators, and how they were used to develop statistical results, define the concepts involved in multi-variate linear regression and describe the meaning of the resulting variables, analyze inefficiencies in the context of the how the economic variables relate to the stock market, project developments in the structure of stock markets and the implication for market efficiency.

Date of Award



Department of Economics

Presidential Scholar Designation

A paper submitted in partial fulfillment of the requirements for the designation Presidential Scholar


If you are the rightful copyright holder of this Presidential Scholars thesis and wish to have it removed from the Open Access Collection, please submit an email request to Include your name and clearly identify the thesis by full title and author as shown on the work.

Date Original


Object Description

1 PDF (27 pages)

Date Digital



©1991 Kevin E. Pearson





File Format