Stock Market Efficiency – An Information System Perspective A Systematic Literature Review

Abstract

An efficient market provides price discovery and ensures all market participants are ensured a level playing field. The efficiency of stock markets has been studied over many decades, predominantly from a finance theory perspective. The study however, proposes to evaluate the issue of market efficiency from an information system perspective. Information systems play a significant role in providing timely information with the ability to disseminate market information to all stakeholders worldwide, in an instant. After a systematic review of models evaluating performance of information systems throughput, the Information Success model was chosen and then adapted to suit the requirements of the study. Human behavioral components such as herding behavior, intention to utilize information/systems, user satisfaction, and other criteria such as information quality, system quality and service quality which all play a crucial role in making not just information systems efficient but also financial markets efficient, were linked to provide the study's conceptual framework designed to explore the effects of information systems on stock market behavior.