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European stock markets: the effects of European Union membership on central and eastern european countries
Southall, T.
EU membership involves both political and economic reforms which influence equity markets in the new member states. This study empirically explores the effects of EU accession on the risk and return of equity markets in eight Centraland Eastern European markets which joined the EU in 2004. The study also incorporates a review of how the influence of macroeconomic variables and the level of integration with global and European markets change as a result of EU membership. Based on empirical tests using weekly data over ten years this study concludes that EU membership results in a significant decline in equity marketvolatility but that absolute return levels change only to a limited degree implying that risk-adjusted returns increase as a result of EU accession. Furthermore, the study suggests that equity markets in new EU member states become increasingly influenced by global rather than local macroeconomic factors afterthe EU accession and that the level of integration with global markets increases. Integration of financial markets in an enlarged EU Empirical study of effects on equity markets Valuable insights both for academics and practitioners,e.g. portfolio managers INDICE: Introduction.- Literature Review.- Definition of Research Questions and Hypotheses.- Research Methodology.- Review of Empirical Data.- Findings and Discussion.- Conclusions.
- ISBN: 978-3-7908-2073-7
- Editorial: Physica
- Encuadernacion: Cartoné
- Páginas: 235
- Fecha Publicación: 01/09/2008
- Nº Volúmenes: 1
- Idioma: Inglés