ORCID Identifiers
Document Type
Article
Source of Publication
The International Journal of Business and Management Research
Publication Date
3-5-2021
Abstract
This paper advances the view that the deep confidence of market regulators in the assumptions and premises of the Efficient Market Hypothesis (EMH) has led to the underestimation of market risks, thus inactivating the market education of existing and future investors. Hence, they have not responded to financial illiteracy, which exacerbated the recent financial crisis. Investor education may be considered as a systemic risk management tool for future financial crises and, especially, financial literacy can drive a wedge between the regulation and the prevention of severe financial crises based on expected benefits versus losses. This also will help to regain investors’ trust in the market after the crisis and instill investors with more confidence. This approach has not yet received the attention it deserves.
DOI Link
Volume
9
Issue
1
First Page
65
Last Page
73
Disciplines
Business
Keywords
Efficient market hypothesis, Financial literacy, Financial crisis, Financial regulation, Financial innovation, Systemic risk
Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.
Recommended Citation
Siriopoulos, Costas, "Financial Markets are Not Efficient: Financial Literacy as an Effective Risk Management Tool" (2021). All Works. 4164.
https://zuscholars.zu.ac.ae/works/4164
Indexed in Scopus
no
Open Access
yes
Open Access Type
Hybrid: This publication is openly available in a subscription-based journal/series