Dynamic Conditional Correlation Analysis of Stock Market Contagion: Evidence from the 2007-2010 Financial Crises

Volume: 3 Number: 3 September 1, 2013
  • Zouheir Mighri
  • Faysal Mansouri
EN

Dynamic Conditional Correlation Analysis of Stock Market Contagion: Evidence from the 2007-2010 Financial Crises

Abstract

This research examines the time-varying conditional correlations to the daily stock index returns. We use a dynamic conditional correlation (DCC) multivariate GARCH model in order to capture potential contagion effects between US and major developed and emerging stock markets during the 2007-2010 major financial crisis. Empirical results show substantial evidence of significant increase in conditional correlation or contagion as well as herding behavior during crisis periods. This result contrasts with the “no contagion” finding reached by Forbes and Rigobon (2002).

Keywords

Details

Primary Language

English

Subjects

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Journal Section

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Authors

Zouheir Mighri This is me

Faysal Mansouri This is me

Publication Date

September 1, 2013

Submission Date

September 1, 2013

Acceptance Date

-

Published in Issue

Year 2013 Volume: 3 Number: 3

APA
Mighri, Z., & Mansouri, F. (2013). Dynamic Conditional Correlation Analysis of Stock Market Contagion: Evidence from the 2007-2010 Financial Crises. International Journal of Economics and Financial Issues, 3(3), 637-661. https://izlik.org/JA73PW87ZS
AMA
1.Mighri Z, Mansouri F. Dynamic Conditional Correlation Analysis of Stock Market Contagion: Evidence from the 2007-2010 Financial Crises. IJEFI. 2013;3(3):637-661. https://izlik.org/JA73PW87ZS
Chicago
Mighri, Zouheir, and Faysal Mansouri. 2013. “Dynamic Conditional Correlation Analysis of Stock Market Contagion: Evidence from the 2007-2010 Financial Crises”. International Journal of Economics and Financial Issues 3 (3): 637-61. https://izlik.org/JA73PW87ZS.
EndNote
Mighri Z, Mansouri F (September 1, 2013) Dynamic Conditional Correlation Analysis of Stock Market Contagion: Evidence from the 2007-2010 Financial Crises. International Journal of Economics and Financial Issues 3 3 637–661.
IEEE
[1]Z. Mighri and F. Mansouri, “Dynamic Conditional Correlation Analysis of Stock Market Contagion: Evidence from the 2007-2010 Financial Crises”, IJEFI, vol. 3, no. 3, pp. 637–661, Sept. 2013, [Online]. Available: https://izlik.org/JA73PW87ZS
ISNAD
Mighri, Zouheir - Mansouri, Faysal. “Dynamic Conditional Correlation Analysis of Stock Market Contagion: Evidence from the 2007-2010 Financial Crises”. International Journal of Economics and Financial Issues 3/3 (September 1, 2013): 637-661. https://izlik.org/JA73PW87ZS.
JAMA
1.Mighri Z, Mansouri F. Dynamic Conditional Correlation Analysis of Stock Market Contagion: Evidence from the 2007-2010 Financial Crises. IJEFI. 2013;3:637–661.
MLA
Mighri, Zouheir, and Faysal Mansouri. “Dynamic Conditional Correlation Analysis of Stock Market Contagion: Evidence from the 2007-2010 Financial Crises”. International Journal of Economics and Financial Issues, vol. 3, no. 3, Sept. 2013, pp. 637-61, https://izlik.org/JA73PW87ZS.
Vancouver
1.Zouheir Mighri, Faysal Mansouri. Dynamic Conditional Correlation Analysis of Stock Market Contagion: Evidence from the 2007-2010 Financial Crises. IJEFI [Internet]. 2013 Sep. 1;3(3):637-61. Available from: https://izlik.org/JA73PW87ZS