Equity prices and financial globalization

Abstract

This article appeared in a journal published by Elsevier. The attached copy is furnished to the author for internal non-commercial research and education use, including for instruction at the authors institution and sharing with colleagues.Other uses, including reproduction and distribution, or selling or licensing copies, or posting to personal, institutional or third party websites are prohibited. This paper examines the association between equity returns, economic shocks, and economic integration. The empirical findings show that oil prices and U.S. Federal Reserve funds rates are associated with negative responses of international equity returns, of which a simple asset-pricing model is capable of explaining the international differences. Using vector autoregressions, we find that the effects of global economic shocks operate through the current excess returns of equity prices. Empirically, trade integration increases the responses of international equity returns to oil prices, while finance integration increases the responses of equity returns to Federal Reserve funds rates across countries.

The evaluation of efficiency and value addition of IFRS endorsement towards earnings timeliness disclosure

“…Unfortunately, Pakistan governance system represent a more flashing characteristics of a code of the conduct of the law (Baig, 1997) while the country holds a week equity market, the single ownership of family‐owned firms, organizations are dependent on debt and worse quality of accounting information exposure, (O'Connor, Lucey, Batten, & Baur, 2015) whereas the financial value of IFRS depends on the firms incentive to quality accounting exposure. Generally (Ali & Daly, 2010) the mechanism of financial reporting system actively controlled by national laws, (Jinjarak, 2014) while IFRS have close relation with financial suffering in corporate industry in the Pakistan.…”