Are religious believers irrational: a direct test from an efficient market hypothesis

• Authors: Senarathne Chamil W.

Title variants

PL

Czy ludzie religijni są irracjonalni: bezpośredni test z efektywnej hipotezy rynkowej

• Languages of publication: EN

Abstracts

EN

The current literature does not offer a quantitative test of the irrational behaviour of people, especially taking a proxy for irrationality with reference to an economic activity. This paper examines the role of religious believers in carrying out economic activities. The form of stock market efficiency has been taken as a proxy for testing the null hypothesis that religious believers are irrational on average. The findings suggest that equity markets in religious countries are inefficient at ‘weak form’ level. This provides prima facie evidence for the hypothesis that religious believers are irrational on average. As such, the equity price changes of these stock markets can be forecast on the basis of past patterns. Poor income level and education are the main causes for developing irrationality. As these irrationalities cost economies, the policymakers should design and implement more robust policies and guidelines for poverty alleviation and the enrichment of education at country level.

PL

Współczesna literatura nie oferuje ilościowego testu irracjonalnego zachowania ludzi, zwłaszcza biorąc pod uwagę nieracjonalność w odniesieniu do działalności gospodarczej. Artykuł analizuje rolę ludzi wierzących w prowadzeniu działalności gospodarczej. Forma efektywności rynku akcji została przyjęta jako przybliżenie do przetestowania zerowej hipotezy mówiącej, że wierzący są przeciętnie irracjonalni. Rezultaty badań sugerują, że rynki akcji w krajach religijnych są nieefektywne na poziomie „słabej formy”. Dostarcza to dowodów prima facie na hipotezę, że wierzący są przeciętnie irracjonalni. W związku z tym zmiany cen akcji na tych rynkach papierów wartościowych można prognozować na podstawie wcześniejszych wzorców. Niski poziom dochodów i słabe wykształcenie są głównymi przyczynami rozwoju irracjonalności. Ponieważ irracjonalność skutkuje kosztami dla gospodarki, decydenci powinni opracować i wdrożyć bardziej solidne polityki i wytyczne dotyczące zmniejszania ubóstwa i wzbogacania edukacji na poziomie kraju.

Keywords

EN

religion; believers; efficient market hypothesis (EMH); atheists; irrationality; education

PL

religia; wierzący; skuteczna hipoteza rynkowa (EMH); ateiści; irracjonalność; edukacja

• Publisher: Wydawnictwo Uniwersytetu Ekonomicznego we Wrocławiu
• Journal: Nauki o Finansach
• Year: 2020
• Issue: vol. 25, nr 1
• Pages: 35-53

Contributors

author

Senarathne Chamil W.

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