With the EPFs emerging as a vital source of capital inflow for the developing countries, an array of issues arises regarding this pattern of investment. It is of prime importance to understand the diversification benefits accruing to an investor from investing in the developing countries and the returns to stocks of these emerging markets. Investors and researchers are concerned about the level of integration of these markets with the financial markets of the industrially advanced countries. Several research works have been conducted in the past to investigate about the process of integration between these markets and to understand the changes appearing in the risk-return features of emerging markets. This helps in the understanding of the individual investor’s reaction to the changes in organization of financial markets and the changes in her behaviour in favourable and unfavourable economic conditions. Sufficient research papers are available, that present their findings related to the developed industrial countries. It has been found that there is a lack in recent researches concerning the stock market scenario and market returns in the emerging economies. ...Show more
An essay reviewing the literature relating to Investment opportunities and risks in stock markets: A comparison between emerging and developed economies Introduction Trend of investment in the developing countries has increased in magnitude over the past few years…
It consists of both against and for arguments in relation to the research topic. Furthermore, literature review paves the way towards selecting best suitable research method and research approach as it provides different viewpoints about the research topic.
Kettell (2011) further elaborates the concept of Shariah as the path not only leading to Allah (the Arabic word for God) but the path believed and followed by all Muslims to be the path directed and shown by Allah through His Messenger, the Last Prophet Muhammad (Peace be Upon Him) (p.13).
From 2006 to 2007, the increased rates of foreclosure among the homeowners in the USA laid the foundations of the crisis that commenced in August 2008 and affected many financial institutions. The housing bubble imposed innumerable threats to the stability of the American economy.
About Forex Forex is an over-the counter financial market where currencies, worldwide, is traded. It centers, with offices all parts of the world, is a platform where all nationals buy and sell currencies (Levinson, 2005). The financial markets fundamental function is price setting like valuing gold or shares of stock but however relies on the prices whence an individual likes to buy and sell them (Levinson, 2005).
An investing portfolio is characterized by long-term ambitions, free from a market's daily oscillations. Due to the effect of these targets, investment portfolio hypothesis seek to assist investors or economic experts with mechanisms to approximate anticipated risk and returns related to it (Fama 1998).
This is because of the fact that internal resources and capabilities have limitations in keeping the economic progress of a country beyond certain limits. Even developed countries are currently trying to increase FDI as much as possible. Globalization has given momentum to this trend.
The research was carried out between 2008 and 2011. Patel and Prajapati (2014) found out an insignificant relationship between the dividend announcements and share prices. The researchers found no significant AAR (Average Abnormal Returns)
Theoretical and empirical studies on the globalisation of firms and multinational companies have in spite of the relatively short period, reached a significant level. Financial facets of multinational firms have been discussed since