Author: Tan Kok Loong 1 & Wong Pik Har2
1Birmingham City University Business School, United Kingdom.
2Tunku Abdul Rahman University College, Faculty of Accountancy, Finance & Business, Malaysia.
Abstract
This study attempts to look at emerging markets as an alternative for international diversification. This study examines if equity investors from Asian Emerging Markets are able to gain diversification benefit by investing in the equity markets of other Asian Emerging Markets. An assessment of market integration is made using a cross country correlation analysis and a Johansen cointegration test. The results indicate that Asian Emerging Markets are moving towards integration as well. Therefore, this study concludes that diversification among Asian Emerging Markets is no longer a viable option in the long run.
