Impact of the 2007 US financial crisis on the emerging equity markets

a:6:{i:0;s:225:"Purpose - The purpose of this paper is to explore empirically the effects of the current financial crisis on the integration and co-movements of selected stock markets of the emerging economies, namely Indonesia and Malaysia.";i:1;s:119:"Design/methodology/approach - The paper employs the standard time series technique and vector autoregressive framework.";i:2;s:286:"Findings - The results of this paper support the general view that stock markets tend to show greater degree of integration or increased co-movements during the crisis period, resulting in lesser benefit of diversification that can be gained by investors participating in these markets.";i:3;s:113:"Research limitations/implications - This paper only focuses on emerging equity markets of Malaysia and Indonesia.";i:4;s:259:"Practical implications - This paper reveals that unlike during the pre-crisis period, the long-run diversification benefits that can be earned by investors across the emerging equity markets of Indonesia and Malaysia during the crisis period tend to diminish.";i:5;s:213:"Originality/value - By dividing the study periods into the pre-crisis period and during the crisis period, it enables us to explore whether the cross-market linkages between these markets change due to the crisis.";}