The New Economy and Global Stock Returns /

This paper revisits the relative importance of global versus country-specific factors underlying stock returns. It constructs a new firm level data set covering emerging and developed markets and estimates a simple factor model, which breaks down stock returns into a global business cycle factor, gl...

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Detalhes bibliográficos
Autor principal: Catao, Luis
Outros Autores: Brooks, Robin
Formato: Periódico
Idioma:English
Publicado em: Washington, D.C. : International Monetary Fund, 2000.
coleção:IMF Working Papers; Working Paper ; No. 2000/216
Acesso em linha:Full text available on IMF
Descrição
Resumo:This paper revisits the relative importance of global versus country-specific factors underlying stock returns. It constructs a new firm level data set covering emerging and developed markets and estimates a simple factor model, which breaks down stock returns into a global business cycle factor, global industry factors, country-specific factors and firm-level effects. The results indicate that the share of variation in stock returns explained by global industry factors has grown sharply since the mid-1990s, at the expense of country-specific factors. Foremost among the global factors is a 'new economy' factor, which has become a key determinant of global stock returns.
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Descrição Física:1 online resource (39 pages)
Formato:Mode of access: Internet
ISSN:1018-5941
Acesso:Electronic access restricted to authorized BRAC University faculty, staff and students