European Financial Markets: The Effects of European Union by Tony Southall

By Tony Southall

EU club includes political and monetary reforms
which effect monetary markets within the new member states.
This examine empirically explores and quantifies the consequences of
EU accession at the possibility and go back of fairness markets in 8
Central and jap ecu markets becoming a member of the european in 2004.
The research additionally features a evaluation of ways the impact of
macroeconomic variables and the extent of integration with
global and eu markets swap because of
EU club.
Based on empirical exams utilizing weekly info over ten years,
this research concludes that european club ends up in a
significant decline in fairness industry volatility and a
significant raise in risk-adjusted, yet now not absolute,
equity returns. additionally, the learn means that fairness
markets in new ecu member states develop into more and more
influenced via worldwide instead of neighborhood macroeconomic
factors after the european accession and that the extent of integration
with worldwide markets raises.

Show description

Read or Download European Financial Markets: The Effects of European Union Membership on Central and Eastern European Equity Markets PDF

Similar urban & regional books

Quantitative Methods in Tourism Economics

Tourism economics is partially in line with confirmed ideas from the economics self-discipline, however it additionally comprises components from sociology, psychology, association idea and ecology. It has through the years become an beautiful multi-disciplinary orientated method of the certainty of the affects of rest time in a latest society, together with cultural historical past, sustainable caliber of lifestyles, and business association of the hospitality undefined.

Challenging Neighbours: Rethinking German und Dutch Economic Institutions

Demanding Neighbours offers broad assurance of the German and Dutch economies, from an institutional viewpoint. Pensions, festival coverage, labour kinfolk, company governance, and overall healthiness care are one of the issues for which the institutional surroundings and function of Germany and the Netherlands are in comparison.

Advanced Cultural Districts: Innovative Approaches to Organizational Design

Complicated Cultural Districts explores the organisational layout concerns in the cultural history region, with specific concentrate on the complex sorts of cultural districts for neighborhood socio-economic improvement.

Additional resources for European Financial Markets: The Effects of European Union Membership on Central and Eastern European Equity Markets

Example text

2, one theoretical explanation for co-movement among asset returns is suggested in the APT (Ross, 1976) which states that asset prices are influenced by a set of economic factors. If the level of influence of a certain set of factors is the same for two separate markets, it would be reasonable to assume that the two markets display a high degree of co-movement. This sub-section derives a set of research hypotheses which jointly explore whether the level of influence of global as well as local factors on transition economy equity returns changes as a result of the EU accession.

Furthermore, the relevant research hypotheses will be derived and formulated. 1 EU Accession and Equity Market Integration For new members, the accession to the EU implies a substantial increase in the level of political and economic integration with the incumbent EU members. Given the scope and extent of this political and economic integration, it is reasonable to assume that the level of integration between financial markets is also affected. This section introduces the first research question, which aims to determine whether there is an impact of EU accession on the level of integration between equity markets in European transition economies, also referred to as local markets, and global equity markets.

045 as a result of market liberalisation. The empirical findings are in line with theoretical predictions based on the fact that the two markets become increasingly dependent on the same world factors. With the effects of the general market liberalisation and integration explored, the focus of the subsequent section is shifted toward an area of market integration that relates to a specific region in general and Central Europe in particular. 3 Regional Market Integration 25 to market access by global investors.

Download PDF sample

Rated 4.94 of 5 – based on 3 votes