Are There Any Diversification Benefits Among Global Finance Center Candidates in Eurasia?


Kocaarslan B. , SARI R. , SOYTAŞ U.

EMERGING MARKETS FINANCE AND TRADE, cilt.53, ss.357-374, 2017 (SSCI İndekslerine Giren Dergi) identifier identifier

  • Cilt numarası: 53 Konu: 2
  • Basım Tarihi: 2017
  • Doi Numarası: 10.1080/1540496x.2016.1216838
  • Dergi Adı: EMERGING MARKETS FINANCE AND TRADE
  • Sayfa Sayıları: ss.357-374

Özet

Several Eurasian markets are considered as potential global financial centers. The main objective of this article is to evaluate the two strong candidates, Russia and Turkey, based on short- and long-run diversification benefits they provide to global investors along with big four global finance centers (US, UK, Hong Kong, Singapore) in the world. To that respect, we investigate both price spillover and volatility spillover effects among global finance centers and the two strong Eurasian candidates. Our results suggest that Istanbul Stock Exchange (ISE) has more diversification benefits and is more resilient to risk transfers from other markets compared to Moskow Stock Exchange (MSE).