Identifying and Evaluating Weak-Form Efficiency Barriers of Tehran Stock Exchange Using BSC and MADM Techniques

Capital market efficiency is an important concept, in terms of economic growth and development. The efficiency of the emerging markets assumes greater importance as the trend of investments is accelerating in these markets as a result of regulatory reforms and removal of other barriers for the international equity investments.According to previous study results that show inefficiency of Tehran stock exchange, investigation of Weak-Form Efficiency Barriers of this capital market will help identify existing limitations, reform future courses of action and eventually promote market efficiency.Therefore, the present research endeavors to study the Weak-Form Efficiency Barriers of Tehran stock exchange and to offer strategies towards improving efficiency and removing barriers. The study method is descriptive-analytical and data gathering is on the basis of literature and case study. In this study, we identified the effective barriers of weak-form efficiency using Delphi method and factor analysis. Thus, the factors which prevent Tehran stock exchange,albeit within BSC four dimensions, from attaining its strategic goals were recognized as barriers of weak-form efficiency. For ranking of the barriers importance, we applied some MADM techniques such as AHP and TOPSIS. We found that, generally, the barriers on the four dimensions of BSC have a significant effect on capital market weakform efficiency. In addition, findings of this study suggest that internal process perspective factors are the main barriers in Tehran stock exchange weak-form efficiency. Also, finally, suggestions meant for improvement and promotion of stock exchange have been given.