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Journal of Financial Markets Vol. 57 2022

Financial integration in the EU28 equity markets: Measures and drivers

M. Nardo; Elisa Ossola; E. Papanagiotou

Joint Research Centre

open access

Abstract

We examine time-invariant and time-varying market integration across European stock markets. Financial integration increases during the sovereign debt crisis and is mainly driven by macroeconomic variables, market capitalization, political uncertainty, and technological developments. Higher market integration is associated with decreasing diversification benefits. During crises, investors select portfolios that are not only explained by firm characteristics.

DOI
10.1016/j.finmar.2021.100633
Volume
57
Pages
100633
Language
en
Sources
crossref openalex

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