Revisiting Stock Market Integration Pre-Post Subprime Mortgage Crisis:Insight From BRIC Countries

This study revisits the long-run relationships and short-run dynamic causal linkages among BRIC stock mar- ket, with the particular attention to the 2008 subprime mortgage crisis. Extending related empirical studies, comparative analyses of pre-crisis, and post-crisis periods were conducted to com...

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Main Authors: Puah, Chin Hong, Brahmana, Rayenda Khresna, Wong, Kai Hung
Format: Article
Language:English
Published: LPEM 2015
Subjects:
Online Access:http://ir.unimas.my/id/eprint/18010/
http://ir.unimas.my/id/eprint/18010/1/Revisiting%20Stock%20Market%20Integration%20Pre-Post%20Subprime%20Mortgage%20Crisis%20%28abstract%29.pdf
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author Puah, Chin Hong
Brahmana, Rayenda Khresna
Wong, Kai Hung
author_facet Puah, Chin Hong
Brahmana, Rayenda Khresna
Wong, Kai Hung
author_sort Puah, Chin Hong
building UNIMAS Institutional Repository
collection Online Access
description This study revisits the long-run relationships and short-run dynamic causal linkages among BRIC stock mar- ket, with the particular attention to the 2008 subprime mortgage crisis. Extending related empirical studies, comparative analyses of pre-crisis, and post-crisis periods were conducted to comprehensively evaluate how stock market integration was affected by financial crises. In general, after employing cointegration test and VAR test, the results reveal the increase of stock market integration in BRICs after the subprime crisis. The evidence also found that China stock market is the most influential among the BRICs, in which China stock market has the ability to Granger cause the other three BRICs member countries. An important impli- cation of our findings is that the degree of integration among countries tends to change over time, especially around periods marked by financial crises.
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publishDate 2015
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spelling unimas-180102017-10-06T04:24:24Z http://ir.unimas.my/id/eprint/18010/ Revisiting Stock Market Integration Pre-Post Subprime Mortgage Crisis:Insight From BRIC Countries Puah, Chin Hong Brahmana, Rayenda Khresna Wong, Kai Hung H Social Sciences (General) This study revisits the long-run relationships and short-run dynamic causal linkages among BRIC stock mar- ket, with the particular attention to the 2008 subprime mortgage crisis. Extending related empirical studies, comparative analyses of pre-crisis, and post-crisis periods were conducted to comprehensively evaluate how stock market integration was affected by financial crises. In general, after employing cointegration test and VAR test, the results reveal the increase of stock market integration in BRICs after the subprime crisis. The evidence also found that China stock market is the most influential among the BRICs, in which China stock market has the ability to Granger cause the other three BRICs member countries. An important impli- cation of our findings is that the degree of integration among countries tends to change over time, especially around periods marked by financial crises. LPEM 2015 Article PeerReviewed text en http://ir.unimas.my/id/eprint/18010/1/Revisiting%20Stock%20Market%20Integration%20Pre-Post%20Subprime%20Mortgage%20Crisis%20%28abstract%29.pdf Puah, Chin Hong and Brahmana, Rayenda Khresna and Wong, Kai Hung (2015) Revisiting Stock Market Integration Pre-Post Subprime Mortgage Crisis:Insight From BRIC Countries. Economics and Finance in Indonesia, 61 (2). pp. 120-130. ISSN 0126-155X
spellingShingle H Social Sciences (General)
Puah, Chin Hong
Brahmana, Rayenda Khresna
Wong, Kai Hung
Revisiting Stock Market Integration Pre-Post Subprime Mortgage Crisis:Insight From BRIC Countries
title Revisiting Stock Market Integration Pre-Post Subprime Mortgage Crisis:Insight From BRIC Countries
title_full Revisiting Stock Market Integration Pre-Post Subprime Mortgage Crisis:Insight From BRIC Countries
title_fullStr Revisiting Stock Market Integration Pre-Post Subprime Mortgage Crisis:Insight From BRIC Countries
title_full_unstemmed Revisiting Stock Market Integration Pre-Post Subprime Mortgage Crisis:Insight From BRIC Countries
title_short Revisiting Stock Market Integration Pre-Post Subprime Mortgage Crisis:Insight From BRIC Countries
title_sort revisiting stock market integration pre-post subprime mortgage crisis:insight from bric countries
topic H Social Sciences (General)
url http://ir.unimas.my/id/eprint/18010/
http://ir.unimas.my/id/eprint/18010/1/Revisiting%20Stock%20Market%20Integration%20Pre-Post%20Subprime%20Mortgage%20Crisis%20%28abstract%29.pdf