Has GameStop Phenomenon Violated the Efficient Market Hypothesis? Verified with T-Test
- https://doi.org/10.2991/aebmr.k.220307.320How to use a DOI?
- GameStop; Short Squeeze; Wallstreet Short Selling; Stock Fluctuation
This paper examines a query upon the GameStop Phenomenon. In the work, the reasons of why the short squeeze occurred and the fluctuations varied dramatically are explained. Due to the uncertainty of the factors leading to the shorting of GME stocks, it may violate the efficient market hypothesis, also known as the null hypothesis. Meanwhile, this may simply be due to the events led by financial analysts and investors Keith Gill and Ryan Cohen that led to the short squeeze. Therefore, if the short squeeze has indeed violated the null hypothesis, there may be other potential possibilities besides the aforesaid events that caused the short squeeze. In order to prove whether the GameStop phenomenon violated the efficient market hypothesis, the P-value was calculated using T-Test based on the daily closing price of GME stocks from January 11th to January 28th, and as a result, the null hypothesis was rejected.
- © 2022 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 - Yan Zhu AU - Zifeng Cheng AU - Sitong Liu AU - Zhiwei Yao PY - 2022 DA - 2022/03/26 TI - Has GameStop Phenomenon Violated the Efficient Market Hypothesis? Verified with T-Test BT - Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022) PB - Atlantis Press SP - 1946 EP - 1951 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.220307.320 DO - https://doi.org/10.2991/aebmr.k.220307.320 ID - Zhu2022 ER -