Driving forces of the ASEAN-5 stock markets integration

The purpose of this study is to examine the determinants of stock market integration among five selected Association of Southeast Asian Nations (ASEAN) emerging stock markets (Malaysia, Thailand, Indonesia, the Philippines and Singapore). – Both pooled OLS and panel data regressions were used over t...

Full description

Bibliographic Details
Main Authors: Bakri, Abdul Karim, Hoe, Xin Ning
Format: Article
Language:English
Published: Emerald Group Publishing Ltd. 2013
Subjects:
Online Access:http://ir.unimas.my/id/eprint/15922/
http://ir.unimas.my/id/eprint/15922/1/Driving%20forces%20of%20the%20ASEAN-5%20stock%20markets%20integration%20%28abstrak%29.pdf
_version_ 1848837953072136192
author Bakri, Abdul Karim
Hoe, Xin Ning
author_facet Bakri, Abdul Karim
Hoe, Xin Ning
author_sort Bakri, Abdul Karim
building UNIMAS Institutional Repository
collection Online Access
description The purpose of this study is to examine the determinants of stock market integration among five selected Association of Southeast Asian Nations (ASEAN) emerging stock markets (Malaysia, Thailand, Indonesia, the Philippines and Singapore). – Both pooled OLS and panel data regressions were used over the period spanning from 2001 to 2010. – This study finds that trade and stock markets volatility significantly influence stock market integration in this region. This finding is consistent with the view that the stronger the bilateral trade ties among the countries, the higher the degree of co-movements. In addition, if one market's volatility increases relative to another market's volatility, the first market's returns should also increase relative to the second market's return. – As the ASEAN-5 stock markets are integrated, there is limited room to gain benefits from international investment diversification in the region. There is a need for policy coordination among ASEAN-5 members to mitigate the impacts of financial instability. – The determinants of stock market integration are still largely unexplored in the previous studies. This study attempts to partially fill the gap in the literature and to provide recent empirical evidence on the forces behind the stock market integration among the ASEAN-5.
first_indexed 2025-11-15T06:47:50Z
format Article
id unimas-15922
institution Universiti Malaysia Sarawak
institution_category Local University
language English
last_indexed 2025-11-15T06:47:50Z
publishDate 2013
publisher Emerald Group Publishing Ltd.
recordtype eprints
repository_type Digital Repository
spelling unimas-159222017-05-03T01:28:49Z http://ir.unimas.my/id/eprint/15922/ Driving forces of the ASEAN-5 stock markets integration Bakri, Abdul Karim Hoe, Xin Ning HG Finance The purpose of this study is to examine the determinants of stock market integration among five selected Association of Southeast Asian Nations (ASEAN) emerging stock markets (Malaysia, Thailand, Indonesia, the Philippines and Singapore). – Both pooled OLS and panel data regressions were used over the period spanning from 2001 to 2010. – This study finds that trade and stock markets volatility significantly influence stock market integration in this region. This finding is consistent with the view that the stronger the bilateral trade ties among the countries, the higher the degree of co-movements. In addition, if one market's volatility increases relative to another market's volatility, the first market's returns should also increase relative to the second market's return. – As the ASEAN-5 stock markets are integrated, there is limited room to gain benefits from international investment diversification in the region. There is a need for policy coordination among ASEAN-5 members to mitigate the impacts of financial instability. – The determinants of stock market integration are still largely unexplored in the previous studies. This study attempts to partially fill the gap in the literature and to provide recent empirical evidence on the forces behind the stock market integration among the ASEAN-5. Emerald Group Publishing Ltd. 2013 Article PeerReviewed text en http://ir.unimas.my/id/eprint/15922/1/Driving%20forces%20of%20the%20ASEAN-5%20stock%20markets%20integration%20%28abstrak%29.pdf Bakri, Abdul Karim and Hoe, Xin Ning (2013) Driving forces of the ASEAN-5 stock markets integration. Asia-Pacific Journal of Business Administration, 5 (3). pp. 186-191. ISSN 1757-4323 http://www.emeraldinsight.com/doi/full/10.1108/APJBA-07-2012-0053 DOI: 10.1108/APJBA-07-2012-0053
spellingShingle HG Finance
Bakri, Abdul Karim
Hoe, Xin Ning
Driving forces of the ASEAN-5 stock markets integration
title Driving forces of the ASEAN-5 stock markets integration
title_full Driving forces of the ASEAN-5 stock markets integration
title_fullStr Driving forces of the ASEAN-5 stock markets integration
title_full_unstemmed Driving forces of the ASEAN-5 stock markets integration
title_short Driving forces of the ASEAN-5 stock markets integration
title_sort driving forces of the asean-5 stock markets integration
topic HG Finance
url http://ir.unimas.my/id/eprint/15922/
http://ir.unimas.my/id/eprint/15922/
http://ir.unimas.my/id/eprint/15922/
http://ir.unimas.my/id/eprint/15922/1/Driving%20forces%20of%20the%20ASEAN-5%20stock%20markets%20integration%20%28abstrak%29.pdf