A Global Comparative Study of Financial Market Anomalies

Abstract

The financial market has long been regarded as an effective price discovery mechanism; however, a substantial body of empirical research has revealed the existence of market anomalies. These anomalies not only challenge traditional market efficiency theories but also reflect the complexity of investor behavior. This study examines market anomalies in financial markets, with a focus on diverse asset classes and distinct national markets. In order to analyse significant categories of anomalies, including price anomalies (momentum and reversal effects), volume anomalies, and other irregular patterns such as the calendar effect, the research employs a literature review methodology. The distinctions between established and emerging markets, along with variances within asset classes such as equities, fixed income, and foreign currency markets are elucidated by this research using comparative analysis. The results enhance comprehension of market efficiency and behavioural finance theories. Furthermore, the study offers insights for policymakers and investors to enhance their understanding and management of these anomalies in their decision-making processes.