THE RELATIONS AMONG EQUITY MARKETS: A STUDY OF SHARE PRICE CO-MOVEMENTS IN THE UNITED STATES, UNITED KINGDOM, GERMANY AND JAPAN

摘要: MOST OF the existing studies on international capital market are based a segmented approach. This approach treats different national markets as separated entities, hardly related to each other. For this reason (under assumption of segmentation), comparable assets may differ in their return markets. Although segmentation enjoys surprisingly large following, it is not only possible interpretation market. The alternative hypothesis, i.e., that prices behave if there one multinational perfect market, should be considered. hypothesis has advantage being consistent with much accepted economic theory. Also unambiguous where can stand for any number specific imperfect formations. Market widely structure Different currency areas, political organizations and trade barriers have been given priori evidence This, however, necessarily case. An examination behavior asset reveals price hypothesis. It noted, certain body data both several forms segmentation. But main theme study show validity equity sufficient cannot reject regard