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Objective - This paper aims to revisit the relationship between the Latin American and U.S. stock markets during the Covid-19 pandemic. Methodology-The dynamic connectivity between these markets was estimated by implementing the time-varying VAR model (TVP-VAR) for daily data from January 2010 to June 2021. Results - There are three main results. First, although spillovers from each market accounted for most of their variance, exchanges were not entirely independent of each other. Second, the U.S. and Brazil were net transmitters of spillovers, while Argentina and Chile were net receivers. Finally, the magnitude of net spillovers is not high enough to characterize a contagion effect. Practical implications - The inclusion of Latin American stock markets in the scope of Covid-19 studies is an important contribution to the literature that often neglects Latin American markets in its samples. Originality - The study of the connection between markets in the presence of Covid-19 differs from most that focus exclusively on the impact of Covid-19. Understanding the relationship between Latin American and U.S. markets in the presence of a crisis unlike any that has occurred before can help investors in their investment strategies and policymakers, governments, and monetary authorities interested in the integration or disintegration between markets. [ABSTRACT FROM AUTHOR]

Copyright of Mexican Journal of Economics & Finance / Revista Mexicana de Economia y Finanzas is the property of Instituto Mexicano de Ejecutivos de Finanzas and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Sentiments play an important role in justifying economic actions and are typically presented as being a modern incarnation of expectations that influence financial markets, whether they be of a Keynesian or other type. For the case of the São Paulo Stock Market Index (IBovespa), this paper investigates whether sentiments, as publically expressed in specialised media, represent a covariate variable which influences stock market returns, and also how market dynamics evolve through time, especially in times of major shocks or recessions. In this study we use a network approach to relate the evolution of asset returns to a sentiments index. Daily data from IBovespa and a Thomson Reuters MarketPsych index are used as fair indicators of the evolution of the Brazilian economy from 2007 to 2015. We prove that changes in market prices affect news more than the reverse. [ABSTRACT FROM AUTHOR]

Capital flows are responsible for a strong influence on the foreign exchange rates and stock prices macroeconomic parameters. In volatile economies, capital flows can change due to several types of social, political and economic events, provoking oscillations on these parameters, which are recognized as economic crises. This work aims to investigate how these two macroeconomic variables are related with crisis events by using the traditional complex measures due to Lopez-Mancini-Calbet (LMC) and to Shiner-Davison-Landsberg (SDL), that can be applied to any temporal series. Here, Ibovespa (Bovespa Stock Exchange main Index) and the “dollar-real” parity are the background for calculating the LMC and SDL complexity measures. By analyzing the temporal evolution of these measures, it is shown that they might be related to important events that occurred in the Brazilian economy. [ABSTRACT FROM AUTHOR]

When analysing the data periods including the pre-financial and financial crisis periods, the results show that investors might make profits by using Variable Length Moving Average (VMA) trading rules as buying signals rather than as selling signals shown for the Brazil, Russia, India and China (BRIC) stock markets. However, investors may find it difficult to make profits in a financial crisis period, suggesting that more detailed information should be investigated, since the significant results shown during the full period might not reveal the differences between the pre-financial and financial crisis periods. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is to see if a difference exists between the impact of the subprime crisis on countries with more transparency and more regulated finance than on others. A further objective is to explain the success of the Brazilian case in avoiding the financial crisis and to show empirical evidence for the presence of market discipline. Design/methodology/approach – The paper offers a regulation and transparency index (RTI) based on 37 countries. Considering RTI and stock market index of developed economies, BRICs economies, and developing economies, cross-country estimations are made. Furthermore, the analysis for market discipline in the Brazilian case is based on GMM panels, taking into account market discipline through subordinated debt holders (debentures). Findings – The results indicate that a higher degree of regulation and transparency is related to a higher return and a lower volatility in the stock market during the subprime crisis. Moreover, one of the main reasons for the apparent success of the Brazilian case in facing the crisis is the combination of a strong regulation of the financial system and the presence of market discipline. Practical implications – Transparency of information by the banking sector is relevant for the regulation of the financial system. Originality/value – The paper presents new insights for the literature on financial regulation and transparency of information in the search for a framework capable of avoiding financial crisis. [ABSTRACT FROM AUTHOR]

In the past decade, hundreds of companies from emerging markets have listed their shares on American and European stock markets. Brazil, Russia, India, and China (BRIC) are the main countries of origin of issuers, and stock exchanges in the United States, the United Kingdom, and Luxembourg are the main destinations involved in the process. We use a comprehensive data set for these home and host markets for the end of 2008 to explore the intensity of foreign listings, the subnational geography of cross-listed firms, and the destinations of foreign listings. Cross-listing firms tend to be relatively large and come from capital-intensive, export-oriented, and high-growth sectors. Trading links with and industrial specialization of the host markets affect the choice of destination markets. These patterns, however, are not universal across countries. There is a high concentration of cross-listed firms in the leading financial centers of the BRIC countries, particularly in Russia and Brazil. Firms outside of the leading centers rarely cross-list, and when they do, they enter second-tier host markets. While BRIC countries have a large potential for further foreign listings, the process remains politically sensitive. Our results highlight the shortcomings of the literature on cross-listing in economics and the significance of the cross-listing phenomenon to future research in financial geographies. [ABSTRACT FROM AUTHOR]

Copyright of Revista de Economia e Administração is the property of INSPER Instituto de Ensino e Pesquisa and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The aim of this article is to examine how the dynamics of correlations between two emerging countries (Brazil and Mexico) and the US evolved from January 2003 to December 2013. The main contribution of this study is to explore whether the plunging stock market in the US, in the aftermath of global financial crisis (2007–2009), exerts contagion effects on emerging stock markets. To this end, we rely on a multivariate fractionally integrated asymmetric power autoregressive conditional heteroskedasticity dynamic conditional correlation framework, which accounts for long memory, power effects, leverage terms, and time-varying correlations. The empirical analysis shows a contagion effect for Brazil and Mexico during the early stages of the global financial crisis, indicating signs of "recoupling." Nevertheless, linkages show a general pattern of "decoupling" after the Lehman Brothers collapse. Furthermore, correlations between Brazil and the US are decreased from early 2009 onwards, implying that their dependence is larger in bearish than in bullish markets. [ABSTRACT FROM AUTHOR]