Swallow SimonFox Mark, A2009-03-042009-03-041998-031-877176-25-71174-5045https://hdl.handle.net/10182/866The purpose of this paper is to determine whether New Zealand capital markets are efficient. To do this we investigate two competing models of investor decision making in the context of the New Zealand Stock Exchange. The first model views investors as economically rational individuals who make decisions based on all available information. The second model proposes that investors systematically overreact to good and bad information events. The results are consistent with the notion of overreaction, showing that investors overreact to both good and bad news.enstock marketsstock valuationfinancial analysisexchange valueeconometric analysiseconomic modellingNew Zealand Stock Exchange (NZSE)Discussion PaperMarsden::340203 Finance economicsMarsden::340400 EconometricsMarsden::340206 International economics and international financeMarsden::340401 Economic models and forecasting