Behavioral Finance Perspectives on Pakistan Stock Market Efficiency: A theoretical review

Abstract

The study is based on historical and hypothetical syntheses in understanding the sagacity of investors, stock returns, and stock market efficiency behavior in the theoretical frame of behavioral finance patterns. This research is guided by multidisciplinary behavioral related theories. This study explored Philosophy, theories, methods argument, and difference of opinions along with finance scholars in modern and behavioral finance paradigms. The perspectives on market efficiency studies between the two paradigms are discussed here based on interconnected theoretical perspectives.

Keywords: Behavioral finance, Bounded adaptive Efficiency, Stock Market Efficiency, Bounded Adaptive rationality, Multidisciplinary behavioral theories, Stock returns