Global Stock Market Integration (eBook)

The book covers an in-depth critical analysis of existing literature and empirically investigates and presents a detailed comparison between developed and emerging markets in terms of integration, efficiency, and causality during crisis.

Author Asma Mobarek: Asma Mobarek is Associate Professor in the Stockholm Business School at Stockholm University, Sweden. She also worked in the University of Botswana and University of Dhaka, Bangladesh, in her early career. Her research interests are in market efficiency, market integration, and co-movement. Author Sabur Mollah: Sabur Mollah is Associate Professor of Finance at Stockholm Business School at Stockholm University, Sweden. Mollah previously taught at Leeds University Business School, UK; University of Dhaka, Bangladesh; and University of Botswana. He has published extensively on issues surrounding market reactions to dividend policy, asset pricing behaviour, market efficiency and volatility, and corporate governance.

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Stock market integration between developing and emerging markets has numerous benefits for creating a global - yet stable - world economy. It increases competition and the efficiency of local markets, in turn reducing price volatility and the cost of capital among integrated markets. It also generates capital flows, which enhance financial stability and spur economic growth. At its core, stock market integration has an important role to play in both developing and emerging markets still reeling from the global financial crisis.Global Stock Market Integration analyzes the financial makeup of developing and emerging markets around the world, providing empirical insights into market integration, co-movements in price, crises, and efficiency linkages. Mobarek and Mollah argue that the relationship between market integration and market efficiency within developing and emerging countries is not the only measure necessary for effecting real financial growth. This work brings the review of theories and empirical research on the topic up-to-date and expands the existing literature with new perspectives on developed and emerging markets.