Global Market Integration from Stock Analyst Forecasts

1 Pages Posted: 31 Aug 2009

See all articles by Bohui Zhang

Bohui Zhang

The Chinese University of Hong Kong, Shenzhen

Eliza Wu

The University of Sydney - Business School; Financial Research Network (FIRN)

Date Written: August 19, 2009

Abstract

This paper presents new evidence on international financial market integration using stock analyst earnings forecasts from around the world. By examining cash flow and discount rate news comovements, we find that financial and economic integration has diverged over time as financial integration has developed particularly more rapidly than economic integration over the past decade. However, this divergence is less severe in emerging markets compared with developed markets where financial integration has proceeded at a slower pace. We find that financial integration has developed relatively slowly in emerging markets due to the hampering effects of their poor information environments.

Keywords: financial market integration, stock analysts, cashflows, discount rates, R2

JEL Classification: G15, F36

Suggested Citation

Zhang, Bohui and Wu, Eliza, Global Market Integration from Stock Analyst Forecasts (August 19, 2009). 22nd Australasian Finance and Banking Conference 2009. Available at SSRN: https://ssrn.com/abstract=1458079 or http://dx.doi.org/10.2139/ssrn.1458079

Bohui Zhang

The Chinese University of Hong Kong, Shenzhen ( email )

Eliza Wu (Contact Author)

The University of Sydney - Business School ( email )

University of Sydney
Darlington
Sydney, NSW 2006
Australia

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

HOME PAGE: http://www.firn.org.au

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