Region and industry effects on the equity returns of emerging markets
Abstract
The accelerating globalization of business and integration of financial markets are affecting the equity investment environment of emerging markets (EMS). For the study period, we do not observe statistically significant region or industry effects on the returns of the EMS country equity indexes. All measurements indicate a high degree of integration for EMS regions and broad industry categories. The relative size of region and industry effects and Pearson correlations, however, indicate the dominance of region effects over industry effects. In the EMS world, as a starting step, regional diversification will be more efficient than industrial diversification.
Keywords
Citation
Sener, T. and Salavitabar, H. (2004), "Region and industry effects on the equity returns of emerging markets", Managerial Finance, Vol. 30 No. 3, pp. 17-27. https://doi.org/10.1108/03074350410768949
Publisher
:Emerald Group Publishing Limited
Copyright © 2004, Emerald Group Publishing Limited