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Asymmetric Linkages between BRICS Stock Returns and Country Risk Ratings: Evidence from Dynamic Panel Threshold Models
Journal article   Open access   Peer reviewed

Asymmetric Linkages between BRICS Stock Returns and Country Risk Ratings: Evidence from Dynamic Panel Threshold Models

Walid Mensi, Shawkat Hammoudeh, Seong-Min Yoon and Duc Khuong Nguyen
Review of international economics, v 24(1), pp 1-19
01 Feb 2016
url
https://doi.org/10.1111/roie.12201View
Published, Version of Record (VoR)Maybe Open Access (Publisher Bronze) Open

Abstract

Business & Economics Economics Social Sciences
This study investigates the asymmetric linkages between the five BRICS (Brazil, Russia, India, China and South Africa) countries' stock markets and three country risk ratings (financial, economic and political risk) in the presence of major global economic and financial factors. Using the dynamic panel threshold models, we find evidence of asymmetry in most cases. However, the significance and the signs of the effects of these risk ratings on the BRICS market returns differ across the lower and upper regimes. Furthermore, improvements in the global stock, West Texas Intermediate (WTI) and gold markets enhance the BRICS stock market performance. Increases in implied volatility indices lead to drops in the BRICS markets.

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62 citations in Scopus

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Collaboration types
Domestic collaboration
International collaboration
Web of Science research areas
Economics
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