Efficiency of the Banking sector in the Greek stock market

Abstract

This paper examines the power of the "efficient markets hypothesis" in the Greek stock market reality and in the banking sector in particular. For this purpose, the closing values of bank shares for the years 2014 to 2019 were used and tested with the help of various unit root tests (Augmented Dickey-Fuller and Dickey-Fuller GLS) if the prices follow a 'random walk' procedure. In addition, various technical analysis indicators (Moving Average, MACD, RSI) were applied to the sample in order to highlight the profitability of this approach. The empirical findings of the above approaches lead to interesting conclusions about the effectiveness of the banking industry.