Stock Market Interdependence in Emerging Asian Economies: An Exploration

By Ritankitashree Pathak

Stock market interdependence can be understood as the process through which markets become closely integrated with its neighboring markets or the markets of the rest of the world without any administrative or economic barriers. This implies free flow of capital from one market to the other leading to better allocation of capital, development of markets, risk diversification as well as the development of financially unstable and less developed markets. It has been defined by different researchers differently. Classical ideology connote that markets are integrated because 'The Law of One Price' holds good i.e. the returns on assets are identical irrespective of the domicile of the investor or the issuer (Pagano, 2007). Market interdependence imply that markets are integrated when participants face single set of rules and have equal access to all financial instruments and services thereon and are treated as equal while being active in the market (Fakhr & Tayabi, 2009). It is stated as a process by which segmented markets get unified and the participants enjoy same access across markets (Jain & Bhanumurthy, 2005).

• Format: Paperback
• Language: English
• ISBN: 7333240738
• ISBN13: 9787333240730
• Release Date: September 2022
• Publisher: Faculty of Commerce Banaras Hindu University
• Length: 228 Pages
• Weight: 0.68 lbs.
• Dimensions: 0.5" x 6.0" x 9.0"