Stock market interdependence: evidence from Australia

Leonard Chong, Michael E. Drew, Madhu Veeraraghavan

Research output: Contribution to journalArticlepeer-review

3 Citations (Scopus)

Abstract

This study examines the relationship between Australia’s stock market and the five largest international markets for the period 1991 through 2001. Preliminary findings, using correlation statistics, indicated potential benefits to international diversification for the Australian investor. Further analysis, conducted in the VAR framework using the Johansen cointegration method, found that the Australian market has short and long run linkages with the United States, while tests with other markets found little evidence of interdependence. Moreover, only the US market was found to Granger-cause the Australian market.

Original languageEnglish
Pages (from-to)51-76
Number of pages26
JournalPacific Accounting Review
Volume15
Issue number2
DOIs
Publication statusPublished - 01-02-2003

All Science Journal Classification (ASJC) codes

  • Accounting
  • Finance

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