The Effect of the Financial Crisis on Emerging Markets: A Comparative Analysis of the Stock Market Situation Before and After

This article examines the relationship between six macroeconomic variables and stock market returns of 13 emerging markets from Latin America, Europe, Africa and Asia in the context of global financial crisis of 2008. The findings reveal some commonality in determination and variation of returns with macroeconomic variables from pre-crisis (1st January 2005–31st March 2009) to post-crisis period (1st April 2009–31st March 2016). Further, results show co-integration among most of the macroeconomic variables depicting significant implications for investors and policymakers.

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Stock Market Linkages Before and After the Asian Financial Crisis: Evidence from Three Greater China Economic Area Stock Markets and the US

Review of Pacific Basin Financial Markets and Policies ◽

10.1142/s0219091506000732 ◽

2006 ◽

Vol 09 (02) ◽

pp. 297-315 ◽

Cited By ~ 24

Author(s):

Hwahsin Cheng ◽

John L. Glascock

Keyword(s):

Financial Crisis ◽

Stock Market ◽

Stock Returns ◽

Stock Markets ◽

The United States ◽

Asian Financial Crisis ◽

Greater China ◽

Market Linkages ◽

Economic Area ◽

Before And After

We investigate the stock market linkages between the United States and three Greater China Economic Area stock markets — China, Hong Kong, and Taiwan, before and after the 1997 Asian financial crisis. Daily stock market indices from January 1995 to December 2000 are used for the analysis. Results from Granger causality test indicate increased feedback relationships between the markets in the post-crisis period. We also find, from the principal component analysis, fewer common factors affecting stock returns after the crisis, suggesting more harmonious market co-movements after the financial crisis. Additionally, results from a variance decomposition analysis suggest that stock markets are more responsive to foreign shocks after the crisis. This further strengthens the evidence that stock markets become more interrelated after the 1997 Asian financial crisis.

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Stock‐market forecasts by Singapore newspapers before and after the 1997 Asian financial crisis

Asian Journal of Communication ◽

10.1080/01292980209364816 ◽

2002 ◽

Vol 12 (1) ◽

pp. 100-125 ◽

Cited By ~ 1

Author(s):

Choy How Yun ◽

Koh Siau Wei ◽

Tay Hwee Peng ◽

Hao Xiaoming

Keyword(s):

Financial Crisis ◽

Stock Market ◽

Asian Financial Crisis ◽

Before And After

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Stock market interdependence and its determinants: comparative analysis of developed and emerging markets

International Journal of Financial Engineering and Risk Management ◽

10.1504/ijferm.2013.055851 ◽

2013 ◽

Vol 1 (2) ◽

pp. 140

Author(s):

Dora Gatti

Keyword(s):

Comparative Analysis ◽

Stock Market ◽

Emerging Markets ◽

Market Interdependence

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Determinants of Labor Productivity in Emerging Markets: Evidence from Pre- and Post-Financial Crisis Mexico

Gadjah Mada International Journal of Business ◽

10.22146/gamaijb.28891 ◽

2018 ◽

Vol 20 (3) ◽

pp. 259

Author(s):

Young-Hee Kang ◽

Kyunga Na

Keyword(s):

Corporate Governance ◽

Financial Crisis ◽

Emerging Markets ◽

Labor Productivity ◽

Global Financial Crisis ◽

Foreign Ownership ◽

The World Bank ◽

Before And After ◽

The Global Financial Crisis

Although the global financial crisis of 2008 had tremendous effects on global businesses, its impact on firm performance in emerging markets is unknown. To develop this knowledge, this study explores the factors that influenced labor productivity in emerging markets before and after the crisis. Using a sample of 2,061 Mexican firms that were collected by the World Bank in 2006 and 2010, this study investigates the relationships of bribery, informality, and corporate governance to labor productivity. The results show that, before the crisis, informality and foreign ownership were positively associated with labor productivity. On the other hand, after the crisis, bribery and informality are negatively related to labor productivity, while foreign ownership and external auditing make positive impacts on labor productivity. The findings imply that businesses need to improve the quality of their corporate governance and decrease bribery. Governments of emerging markets need to reduce the levels of informality.

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Contagion of the shareholder market: cases of Colombia, México, Perú, Chile and Argentina

Dimensión Empresarial ◽

10.15665/dem.v18i(1).2068 ◽

2019 ◽

Vol 18 ((1)) ◽

Author(s):

Marcos Vera Leyton

Keyword(s):

Financial Crisis ◽

Stock Market ◽

Time Window ◽

Sum Of Squares ◽

Conditional Correlation ◽

Cumulative Sum ◽

Crisis Period ◽

Dynamic Conditional Correlation ◽

Highly Sensitive ◽

Before And After

This document study the existence of financial crisis contagion, it defined like the transmission of the shocks between countries, which translates in increasing in the correlation anything beyond or fundamental link, taking as a source of contagion by EEUU, Brasil, and analyzing Mexico, Colombia, Peru, Chile and Argentina like “Infected” countries, for the period covered between July 3 of 2001, date of unification of the Colombia Stock Market, to July 3 of 2010. To identify crisis period, and to evoid volatility overestimation, it used the algorithm iterative cumulative sum of squares ICCS, developed by Inclan y Tiao (1994), additionally calculated the dynamic conditional correlation (DCC) Engle Model (2002). The document includes a review of several studies, concepts, and transmission (Contagion) methodologies, and it constitutes one of the few studies that includes Colombia like analysis source. So this study verifies the existence of contagion in the countries studies, except Argentina, but warns that the measure of impact that a crisis in a given country has over other countries is highly sensitive to the way we choose the time window before and after the crisis.

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