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Effect of Fed's Discount Rate Changes on Foreign Stock Indices - Event Study on Morocco and Denmark

Giversen, Jesper and Bendkia, Mohamed (2008)
Department of Business Administration
Abstract
The paper is divided into 8 chapters: Introduction, Background, Theoretical Framework,Methodology & Data Sampling, Results, Analysis, Discussion and finally Conclusion and Proposals for Further Research. The introduction chapter in brief discuses theory of decoupling suggests that emerging markets can be unaffected by crisis in developed economies, while theory of financial integration states that globalization made economies intertwined to each other.
In the methodology chapter, in order to test whether the theory of financial integration or the theory of decoupling stands, we are performing a standard event study. The purpose is to test for any abnormal returns on the Danish and Moroccan stock indices.
The main outcomes of the event... (More)
The paper is divided into 8 chapters: Introduction, Background, Theoretical Framework,Methodology & Data Sampling, Results, Analysis, Discussion and finally Conclusion and Proposals for Further Research. The introduction chapter in brief discuses theory of decoupling suggests that emerging markets can be unaffected by crisis in developed economies, while theory of financial integration states that globalization made economies intertwined to each other.
In the methodology chapter, in order to test whether the theory of financial integration or the theory of decoupling stands, we are performing a standard event study. The purpose is to test for any abnormal returns on the Danish and Moroccan stock indices.
The main outcomes of the event study research can be briefed into four points. First, the Danish market is partially integrated relative to the US economy, with the existence of a diversification prospects. Second, although the Moroccan market shows some signs of financial integration, it is still a segmented market. Third, the Danish market seems to react more to the release of surprise events in relation to anticipated macroeconomic releases.
Finally, the Moroccan market appears to respond spuriously to surprise events relative to the expected announcements. (Less)
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author
Giversen, Jesper and Bendkia, Mohamed
supervisor
organization
year
type
H1 - Master's Degree (One Year)
subject
keywords
Event Studies, Financial Markets, Theory of Decoupling, Theory of Financial Integration, Financial Crisis, Management of enterprises, Företagsledning, management
language
Swedish
id
2171722
date added to LUP
2008-06-03
date last changed
2012-04-02 17:09:24
@misc{2171722,
  abstract     = {The paper is divided into 8 chapters: Introduction, Background, Theoretical Framework,Methodology & Data Sampling, Results, Analysis, Discussion and finally Conclusion and Proposals for Further Research. The introduction chapter in brief discuses theory of decoupling suggests that emerging markets can be unaffected by crisis in developed economies, while theory of financial integration states that globalization made economies intertwined to each other.
In the methodology chapter, in order to test whether the theory of financial integration or the theory of decoupling stands, we are performing a standard event study. The purpose is to test for any abnormal returns on the Danish and Moroccan stock indices.
The main outcomes of the event study research can be briefed into four points. First, the Danish market is partially integrated relative to the US economy, with the existence of a diversification prospects. Second, although the Moroccan market shows some signs of financial integration, it is still a segmented market. Third, the Danish market seems to react more to the release of surprise events in relation to anticipated macroeconomic releases.
Finally, the Moroccan market appears to respond spuriously to surprise events relative to the expected announcements.},
  author       = {Giversen, Jesper and Bendkia, Mohamed},
  keyword      = {Event Studies,Financial Markets,Theory of Decoupling,Theory of Financial Integration,Financial Crisis,Management of enterprises,Företagsledning, management},
  language     = {swe},
  note         = {Student Paper},
  title        = {Effect of Fed's Discount Rate Changes on Foreign Stock Indices - Event Study on Morocco and Denmark},
  year         = {2008},
}