European Parliament Library

Asia’s Stock Markets :, Are There Crouching Tigers and Hidden Dragons?, Fabian Lipinsky, Li Ong

Stock markets play a key role in corporate financing in Asia. However, despite their increasing importance in terms of size and cross-border investment activity, the region’s markets are reputed to be more “idiosyncratic” and less reliant on economic and corporate fundamentals in their pricing. Using a model that draws on international asset pricing and economic theory, as well as accounting literature, we find evidence of greater idiosyncratic influences in the pricing of Asia’s stock markets, compared to their G-7 counterparts, beyond the identified systematic factors and local fundamentals. We also show proof of a significant relationship between the strength of implementation of securities regulations and the “noise” in stock pricing, which suggests that improvements in the regulation of securities markets in Asia could enhance the role of stock markets as stable and reliable sources of financing into the future
Table Of Contents
Cover; Contents; I. Introduction; Figures; 1. Asia-Pacific Ex-Japan, G-7 and the Rest of the World: Structure of the Financial Sector as at End-2011; Tables; 1. Stock Markets around the World: Capitalization as at End-2012; 2. Asia-Pacific ex-Japan: Foreign Investment in Equity Securities, 1997-2012; II. Data and Stylized Facts; III. Method; 3. Stock Markets Around the World: Mean-Variance Analysis of Country, Regional and World Returns, March 1998 - November 2012; IV. Analysis; A. The Pricing of Stocks
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (47 p.)
Specific Material Designation
Form Of Item

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