Capital Market Integration. New Challenges in an Enlarged Europe
The purpose of this paper is to analyse the linkages between Emerging European stock markets and the developed ones, in relatively stable times that followed the global economic crisis. One of the main reasons that served as an argument in studying stock market integration relies in the prior cont...
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| Format: | Article |
| Language: | English |
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Danubius University
2015-05-01
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| Series: | EIRP Proceedings |
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| Online Access: | http://www.proceedings.univ-danubius.ro/index.php/eirp/article/view/1633/1503 |
| _version_ | 1811326597045682176 |
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| author | Delia-Elena Diaconaşu |
| author_facet | Delia-Elena Diaconaşu |
| author_sort | Delia-Elena Diaconaşu |
| collection | DOAJ |
| description | The purpose of this paper is to analyse the linkages between Emerging European stock markets and
the developed ones, in relatively stable times that followed the global economic crisis. One of the main
reasons that served as an argument in studying stock market integration relies in the prior contradictory
results regarding the regional versus international interdependencies. Using a Vector Error Correction Model
we tested if the Central and Eastern European markets are more internationally or regional integrated. Our
findings suggest that the stock exchanges from CEE react mainly to the arrival of price innovations from the
most mature market in the EU perimeter. The main contribution of this paper is that it provides further
evidence on stock market integration and correlations in emerging stock markets, emphasizing new
connections between London Stock Exchange and the other CEE stock markets. The results are of particular
interest for both portfolio managers and policymakers. |
| first_indexed | 2024-04-13T14:51:55Z |
| format | Article |
| id | doaj.art-b21b3aa2227e493d865b75d6c351f86c |
| institution | Directory Open Access Journal |
| issn | 2067-9211 2069-9344 |
| language | English |
| last_indexed | 2024-04-13T14:51:55Z |
| publishDate | 2015-05-01 |
| publisher | Danubius University |
| record_format | Article |
| series | EIRP Proceedings |
| spelling | doaj.art-b21b3aa2227e493d865b75d6c351f86c2022-12-22T02:42:34ZengDanubius UniversityEIRP Proceedings2067-92112069-93442015-05-01101441447Capital Market Integration. New Challenges in an Enlarged EuropeDelia-Elena Diaconaşu0“Alexandru Ioan Cuza” University of IasiThe purpose of this paper is to analyse the linkages between Emerging European stock markets and the developed ones, in relatively stable times that followed the global economic crisis. One of the main reasons that served as an argument in studying stock market integration relies in the prior contradictory results regarding the regional versus international interdependencies. Using a Vector Error Correction Model we tested if the Central and Eastern European markets are more internationally or regional integrated. Our findings suggest that the stock exchanges from CEE react mainly to the arrival of price innovations from the most mature market in the EU perimeter. The main contribution of this paper is that it provides further evidence on stock market integration and correlations in emerging stock markets, emphasizing new connections between London Stock Exchange and the other CEE stock markets. The results are of particular interest for both portfolio managers and policymakers.http://www.proceedings.univ-danubius.ro/index.php/eirp/article/view/1633/1503emerging stock markets; interdependencies; price innovation |
| spellingShingle | Delia-Elena Diaconaşu Capital Market Integration. New Challenges in an Enlarged Europe EIRP Proceedings emerging stock markets; interdependencies; price innovation |
| title | Capital Market Integration. New Challenges in an Enlarged Europe |
| title_full | Capital Market Integration. New Challenges in an Enlarged Europe |
| title_fullStr | Capital Market Integration. New Challenges in an Enlarged Europe |
| title_full_unstemmed | Capital Market Integration. New Challenges in an Enlarged Europe |
| title_short | Capital Market Integration. New Challenges in an Enlarged Europe |
| title_sort | capital market integration new challenges in an enlarged europe |
| topic | emerging stock markets; interdependencies; price innovation |
| url | http://www.proceedings.univ-danubius.ro/index.php/eirp/article/view/1633/1503 |
| work_keys_str_mv | AT deliaelenadiaconasu capitalmarketintegrationnewchallengesinanenlargedeurope |