Comparative Study of the Iran Capital Market and Western European Countries from the Perspective of Efficiency

Document Type : Original Article

Authors
Mohammad Saadatniya 1
Mohammad Tamimi 2
Allah Karam Salehi 3
Ghasem Rekabdar 4
1 Department of Accounting, Khorramshahr International Branch, Islamic Azad University, khorramshahr, Iran
2 Department of Accounting, Dezful branch, Islamic Azad University, Dezful, Iran.
3 Department of Accounting, Masjed-Soleiman Branch, Islamic Azad University, Masjed-Soleiman, Iran
4 Department of Mathematics, Abadan Branch, Islamic Azad University, Abadan, Iran
10.30495/jik.2024.77593.4538
Abstract
Achieving and continuing economic growth requires the efficient development of the capital market and the optimal allocation of resources, so the analysis and comparison of Iran's capital market with developed countries explains the current position of the market and provides a vision of what is needed for its development and improvement. In this regard, the current research examines and compares the efficiency of the capital market of Iran and ten Western European countries, including Britain, Austria, Norway, Italy, Spain, Germany, Switzerland, Ireland, and Greece, from 1975 to 2020. The findings indicate that in terms of calculated efficiency according to DEA and compared by the Mann-Whitney and Kruskal-Wallis test, Iran's capital market is placed after the countries of Great Britain, Spain, Italy, and Greece. In this regard, in addition to the 4 mentioned countries, in the other countries, except for Austria, the stock market capitalization (SMC) as percent of GDP, the stock market capitalization billion USD (SMCB) and the stock market value traded (SMVT) are much higher than on the Iranian stock exchange. In addition, the return rate of Iranian stock market return (SMR) percent is in the highest order compared to the market of other countries. The intensity of some influencing variables on efficiency also has a significant difference in Iran compared to other countries
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