The stock market in Greece : An empirical study; 1968-1982.
The aim of this study was to analyse firstly, the functioning
of the Greek Stock Market and, secondly, its ability to
influence both the capital formation process and the allocation
of investable funds among the various assets offered in the
Greek Financial Market (the Financial Market defined so as to
include the stock market, the bond market and the money market).
With this respect, this study analysed firstly, the influence of
financial assets returns on household-consumption saving decisions
(see Chapter Two), secondly, the influence of financial
assets returns on the flow-of-funds to and within the financial
market (see Chapter Three) and, thirdly, the ability of the
Stock Exchange Mechanism to help investors to "correctly price"
the shares offered in it (that is, testing the Efficient Market
Hypothesis on the Greek Stock Market; see Chapter Five). In
addition, a fourth area was included, that is an analysis of
the factors that influence shares values and, therefore, shares
returns in Greece, the reason being that the shares valuation
process is viewed as being closely related with all three main
areas that this study intended to analyse (See Chapter Four).
The general conclusion that emerged from the empirical
analysis is that, not only the Greek Stock Market, but the whole
Greek Financial System has failed in the fulfilment of their
aims as they were set in the paragraph above. According to
these findings, a number of suggestions for further research on
the Greek Stock Market were made, relevant to the needs of both
government's and corporations' policy makers.