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Purpose: The purpose of this paper is to investigate the cointegration and volatility spillover dynamics between the USA and South Asian stock markets, namely, India, Pakistan and Sri Lanka. The main objective of this study is to provide the knowledge about integration of financial market and volatility spillovers before, during and after global financial crisis to investors, fund managers and policy-makers. Design/methodology/approach: The Johansen and Juselius cointegration test, Granger Causality test and bivaraite EGARCH model have been applied in this study to examine integration and volatility spillovers between selected stock markets. Findings: The findings show that long-term integration between the USA market and South Asian emerging stock markets. It is found that USA stock market has causal relationship with emerging stock markets in short-term. The findings of EGARCH model reveal that asymmetric volatility spillover effects significant in all selected stock markets in pre, during and post-crisis periods. Furthermore, significant volatility spillover is found from stock markets of USA to all selected South Asian markets during and post-crisis periods. However, volatility spillovers from USA to India and Sri-Lanka markets are significant, while insignificant in case of Pakistani market in pre-crisis period. Overall, we find that returns and volatility spillover effects are higher in financial crisis period as compared to non-financial crisis period. Practical implications: The findings of this paper have important implications for investors, portfolio managers and policy-makers. They can take potential benefits from international portfolio diversification by considering all these facts. The understanding and knowledge of across volatility transmission help them to maximize the gains from diversification and minimize the risk. Policy-makers can develop such strategies which protect the markets of these economies from future financial crisis. Originality/value: Although in finance literature numerous studies have been conducted on integration between different stock markets, most of the studies investigated the integration and volatility spillovers between developed stock markets. However, many studies also analyzed the integration among emerging stock markets in literature review but it is hard to find studies in the context of South Asian stock markets on the effect of global financial crisis on stock markets. The main contribution of this study is to investigate the stock markets integration and volatility transmission between the USA and South Asia by considering the effect of recent 2007 US subprime financial crisis. [ABSTRACT FROM AUTHOR]

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This paper examines the relationship between the investment opportunities and liquidity constraints in the two South Asian emerging markets, i.e. India and Pakistan, over the period of 2010-2015. It reveals that there is a significant relationship between a firm investment opportunities and liquidity constraints. Using pooled OLS fixed effect model, we find a significant negative association between stock illiquidity (external liquidity constraint) and investment opportunities in both BSE and KSE firms. We also find a significant impact of firm's cash flow to total assets ratio (internal liquidity) on firm's investment opportunities. The results are statistically significant for both internal and external liquidity and investment opportunities in the presence of control variables like market-to-book ratio, size, leverage, and dividend payout ratio. Similarly, the results are robust for both emerging markets. The findings of this study are consistent with the findings of previous literature that liquidity is positively related to firm's investment opportunities. Our study further clarify that both internal and external liquidity are important for firm's investment opportunities. [ABSTRACT FROM AUTHOR]

The proportionate use of energy represents economic activity as well as environmental degradation. This study intends to examine the volatility spillover of environmental fluctuations (energy prices) to the stock markets of south Asian countries (i.e., Bangladesh, India, and Pakistan). In this regard, the data have been gathered from the Thomson Reuters DataStream from 2013 to 2021. This study has applied the Granger causality test and ARCH-GARCH (1, 1). It concludes that the bidirectional causality exists between the environmental prices (i.e., energy market) and Bangladesh, Pakistan, and India stock markets (BSE-100, DSE-30, and KSE-100, respectively). The empirical findings of this study show that there are volatility spillovers from the energy to the stock markets of Pakistan and India. On the other hand, no volatility spillover is observed from the energy to the stock market of Bangladesh. Moreover, the study implies that investors should invest in these stock markets to reduce the risk involved with diversification. [ABSTRACT FROM AUTHOR]

This study examines the cost efficiency performance of 111 commercial banks in Bangladesh, India, Pakistan and Sri Lanka over 1997–2004. The primary focus is to assess whether bank size, state ownership and stock exchange listing have significant effects on South Asian banks' efficiency performance. To this end, a translog-form composite-error cost efficiency model, which allows for exogenous environmental influences, is estimated. The results indicate that the overall efficiency of South Asian banks declined over 1997–2004. Larger banks and banks with widespread ownership through stock exchange listings were found to be relatively more cost efficient. In contrast, state-owned banks were less efficient. [ABSTRACT FROM AUTHOR]