Stock markets play a key role in corporate financing in Asia. However, despite their increasing importance in terms of size and cross-border investment activity, the regionas markets are reputed to be more aidiosyncratica and less reliant on economic and corporate fundamentals in their pricing. Using a model that draws on international asset pricing and economic theory, as well as accounting literature, we find evidence of greater idiosyncratic influences in the pricing of Asiaas stock markets, compared to their G-7 counterparts, beyond the identified systematic factors and local fundamentals. We also show proof of a significant relationship between the strength of implementation of securities regulations and the anoisea in stock pricing, which suggests that improvements in the regulation of securities markets in Asia could enhance the role of stock markets as stable and reliable sources of financing into the future.Stock Markets around the World: Capitalization as at End-2012 Region Country Exchange Amount (Millions of U.S. ... Kong Exchanges 2, 831, 946 16.7 5.2 India BSE India 1, 263, 335 7.5 2.3 National Stock Exchange India 1, 234, 492 7.3 2.3anbsp;...
|Title||:||Asia’s Stock Markets: Are There Crouching Tigers and Hidden Dragons?|
|Author||:||Mr. Fabian Lipinsky, Li Lian Ong|
|Publisher||:||International Monetary Fund - 2014-02-26|