A comparison forecasting models for ASEAN equity markets

This paper compares six models for forecasting the performance of the ASEAN equity markets of Malaysia, Singapore, Thailand, Indonesia and the Philippines before, during and after the Asian financial crisis. In the precrisis period, the OLS, ARCH-M and TARCH models have better forecasting performanc...

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Main Authors: Wong, Yoke Chen *, Kok, Kim Lian
Format: Article
Language:English
Published: Sunway University College 2005
Subjects:
Online Access:http://eprints.sunway.edu.my/23/
http://eprints.sunway.edu.my/23/1/wong1.pdf
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author Wong, Yoke Chen *
Kok, Kim Lian
author_facet Wong, Yoke Chen *
Kok, Kim Lian
author_sort Wong, Yoke Chen *
building SU Institutional Repository
collection Online Access
description This paper compares six models for forecasting the performance of the ASEAN equity markets of Malaysia, Singapore, Thailand, Indonesia and the Philippines before, during and after the Asian financial crisis. In the precrisis period, the OLS, ARCH-M and TARCH models have better forecasting performance than the other models. In the crisis period, the ARCH-M model has the best forecast performance for three markets, while the remaining two markets are best forecast with the random walk model. However, in the post-crisis period, the TARCH and EGARCH models are found to be the most suitable models. The different variants of the GARCH model adequately captured the time-varying returns volatility. But the asymmetry of the market returns is not significant in all the markets modelled by the TARCH and EGARCH models.
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spelling sunway-232012-10-15T03:15:52Z http://eprints.sunway.edu.my/23/ A comparison forecasting models for ASEAN equity markets Wong, Yoke Chen * Kok, Kim Lian HF Commerce HG Finance QA Mathematics This paper compares six models for forecasting the performance of the ASEAN equity markets of Malaysia, Singapore, Thailand, Indonesia and the Philippines before, during and after the Asian financial crisis. In the precrisis period, the OLS, ARCH-M and TARCH models have better forecasting performance than the other models. In the crisis period, the ARCH-M model has the best forecast performance for three markets, while the remaining two markets are best forecast with the random walk model. However, in the post-crisis period, the TARCH and EGARCH models are found to be the most suitable models. The different variants of the GARCH model adequately captured the time-varying returns volatility. But the asymmetry of the market returns is not significant in all the markets modelled by the TARCH and EGARCH models. Sunway University College 2005 Article PeerReviewed text en http://eprints.sunway.edu.my/23/1/wong1.pdf Wong, Yoke Chen * and Kok, Kim Lian (2005) A comparison forecasting models for ASEAN equity markets. Sunway Academic Journal, 2. pp. 1-12.
spellingShingle HF Commerce
HG Finance
QA Mathematics
Wong, Yoke Chen *
Kok, Kim Lian
A comparison forecasting models for ASEAN equity markets
title A comparison forecasting models for ASEAN equity markets
title_full A comparison forecasting models for ASEAN equity markets
title_fullStr A comparison forecasting models for ASEAN equity markets
title_full_unstemmed A comparison forecasting models for ASEAN equity markets
title_short A comparison forecasting models for ASEAN equity markets
title_sort comparison forecasting models for asean equity markets
topic HF Commerce
HG Finance
QA Mathematics
url http://eprints.sunway.edu.my/23/
http://eprints.sunway.edu.my/23/1/wong1.pdf