Financial development and stock returns: A cross country analysis

Harris Dellas () and Martin K. Hess

Diskussionsschriften from Universitaet Bern, Departement Volkswirtschaft

Abstract: We examine stock returns in a cross section of emerging and mature markets (49 countries) over 1980-99. Stock returns are found to be significantly related to the degree of financial development. In general, a deeper and higher quality banking system is associated with lower volatility of stock returns and a greater synchronization in the movements of domestic and world returns. International synchronization is also greater the more liquid the stock market.

Keywords: financial development; stock returns (search for similar items in EconPapers)
JEL-codes: G15 O10 (search for similar items in EconPapers)
Date: 2002-12
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Financial development and stock returns: A cross-country analysis (2005)
Working Paper: Financial Development and Stock Returns: A Cross-Country Analysis (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:ube:dpvwib:dp0218

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