Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)

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Has GameStop Phenomenon Violated the Efficient Market Hypothesis? Verified with T-Test

Authors
Yan Zhu1, *, Zifeng Cheng2, Sitong Liu3, Zhiwei Yao4
1Academy of Our Lady of Mercy, Lauralton Hall, Milford, Connecticut 06460, United States
2Chongqing Nankai Middle School, Chongqing, Sichuan 400044, China
3Xi’an Tie Yi International Curriculum Center, Xi’an Shannxi, 710054, China
4High School Affiliated to the University of Nottingham, Ningbo, Zhejiang, 315000, China
Corresponding Author
Yan Zhu
Available Online 26 March 2022.
DOI
10.2991/aebmr.k.220307.320How to use a DOI?
Keywords
GameStop; Short Squeeze; Wallstreet Short Selling; Stock Fluctuation
Abstract

This paper examines a query upon the GameStop Phenomenon. In the work, the reasons of why the short squeeze occurred and the fluctuations varied dramatically are explained. Due to the uncertainty of the factors leading to the shorting of GME stocks, it may violate the efficient market hypothesis, also known as the null hypothesis. Meanwhile, this may simply be due to the events led by financial analysts and investors Keith Gill and Ryan Cohen that led to the short squeeze. Therefore, if the short squeeze has indeed violated the null hypothesis, there may be other potential possibilities besides the aforesaid events that caused the short squeeze. In order to prove whether the GameStop phenomenon violated the efficient market hypothesis, the P-value was calculated using T-Test based on the daily closing price of GME stocks from January 11th to January 28th, and as a result, the null hypothesis was rejected.

Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

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Volume Title
Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
26 March 2022
ISBN
978-94-6239-554-1
ISSN
2352-5428
DOI
10.2991/aebmr.k.220307.320How to use a DOI?
Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

Cite this article

risenwbib
TY  - CONF
AU  - Yan Zhu
AU  - Zifeng Cheng
AU  - Sitong Liu
AU  - Zhiwei Yao
PY  - 2022
DA  - 2022/03/26
TI  - Has GameStop Phenomenon Violated the Efficient Market Hypothesis? Verified with T-Test
BT  - Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
PB  - Atlantis Press
SP  - 1946
EP  - 1951
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220307.320
DO  - 10.2991/aebmr.k.220307.320
ID  - Zhu2022
ER  -