Title

Subset of Emerging Equity Markets Performance in International Equity Markets at Times of Currency Crises

Document Type

Article

Publication Date

3-2004

Abstract

This study examines the behaviors of eight Asian emerging market Single Country-Closed End Funds' (SCCEFs) market prices, net asset values (NAV) and price to net asset value ratios from January 5, 1996 to February 25, 2000, bracketing the period of the Asian currency crisis. The purpose of the study is to discern the degree of change of SCCEFs' market prices and net asset values (NAV) in conjunction with changes in certain objective economic factors as explanatory variables, particularly changes in exchange rates, that may shed light on the probable reasons for the stickiness of market prices and yet speedy adjustment of NAVs. Results of statistical analysis suggest asymmetric information holding explanation to be the major reason for the observed phenomenon that can be exploited for profitable SCCEF investment decisions.

Publication Name

Managerial Finance

Volume Number

30

First Page

28

Last Page

50

Issue Number

3