Some Methodological Considerations when Evaluating the Empirical Studies of the Efficient Capital Markets Hypothesis

During the last decade or so there has been a huge outpouring of empirical studies of the efficient capital market hypothesis (ECMH). These studies are of potential use to the financial manager, not just as indicators of the extent to which capital markets are efficient, but more importantly as indicators as to the effects of certain financial policies and activity on a company's share price.