Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)

A Literature Review on the Evidence and Limitation for the AMH Theory

Authors
Zhaoyu Li1, a,*, , Rui Li2, b, *, , Boning Xiao3, c, *,
1College of economy and trade, Zhongkai University of Agriculture and Engineering, ZHKU, Guangzhou, China
2College of Economics and Management, Tianjin University of Science and Technology, TUST, Tianjin, China
3School of Economics, Beijing Technology and Business University, BTBU, Beijing, China

These authors contributed equally.

*Corresponding author. Email: azhaoyu_li@foxmail.com
Corresponding Authors
Zhaoyu Li, Rui Li, Boning Xiao
Available Online 15 December 2021.
DOI
10.2991/assehr.k.211209.468How to use a DOI?
Keywords
Adaptive Market Hypothesis; Efficient Market Hypothesis; Application; Limitation; Market efficiency
Abstract

It remains a challenge for the Adaptive Market Hypothesis (AMH) to reconcile Efficient Market Hypothesis (EMH) with behavioural finance. This paper reviews many previous papers and examines AMH whether it is consistent with real changes in markets. By examining previous studies on the relationship between AMH and EMH, this paper summarizes the efficiency of different types of markets in different countries to prove Adaptive Market Hypothesis. In most stock markets, bond markets, foreign exchange markets and other relevant markets, the changes of efficiency overtime are consistent with implication of AMH. However, there are still limitations of AMH which cannot well explain the efficiency of crude oil markets. Furthermore, it is criticized being a qualitative model instead of a quantitative model. This research enables us to better understand the theory of AMH as well as its application and limitation.

Copyright
© 2021 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

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Volume Title
Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
Series
Advances in Economics, Business and Management Research
Publication Date
15 December 2021
ISBN
10.2991/assehr.k.211209.468
ISSN
2352-5428
DOI
10.2991/assehr.k.211209.468How to use a DOI?
Copyright
© 2021 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Zhaoyu Li
AU  - Rui Li
AU  - Boning Xiao
PY  - 2021
DA  - 2021/12/15
TI  - A Literature Review on the Evidence and Limitation for the AMH Theory
BT  - Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
PB  - Atlantis Press
SP  - 2886
EP  - 2891
SN  - 2352-5428
UR  - https://doi.org/10.2991/assehr.k.211209.468
DO  - 10.2991/assehr.k.211209.468
ID  - Li2021
ER  -