A review of capital market theory from a South African Perspective

Abstract

The vast quantity of finance literature dealing with Capital Market Theory on the New York Stock Exchange (NYSE) is evidence of the demand for research in this area. Until very recently, almost no research In this area has been conducted on smaller markets like the Johannesburg Stock Exchange (JSE). In this paper the evolution of Capital Market Theory will be reviewed, and where possible recent findings on the JSE will be contrasted to the well-established findings documented on the NYSE.