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Volatility spillovers among BRICS and developed stock markets: impact of recent global shocks

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Resumo:This study analyses volatility spillovers amongst four developed financial markets and four BRICS markets, using the Diebold and Yilmaz (2012) methodology, based on generalized variance decompositions within a VAR framework. The study covers a period from March 2013 to December 2023, focusing on contemporaneous global events, from financial markets turbulences to geopolitical conflicts. The results show evidence that a substantial share of total forecast error variance in volatility is attributable to spillovers. It was found that spillovers primarily occur within developed markets, particularly amongst the USA, UK, and Germany. Spillovers from developed markets to BRICS are also significant, while spillovers from BRICS markets display more isolated levels. Major financial upheavals have profoundly influenced spillover dynamics, increasing volatility transmission to extreme levels. BRICS markets displayed more erratic responses to global shocks, particularly during the COVID-19 pandemic and the onset of the Russia-Ukraine war, reflecting heightened vulnerability. The study also finds that developed markets predominantly acted as net transmitters throughout the period, while BRICS markets acted as net receivers. However, during periods of turmoil, this dynamic shifted, with BRICS markets performing as net transmitters of volatility
Autores principais:Alexandre, Ana Sofia Pires
Assunto:Stock Markets Volatility Spillovers Diebold-Yilmaz Forecast Error Variance Decomposition BRICS Developed markets Mercados de Ações Transmissão de Volatilidade DieboldYilmaz Decomposição da Variância do Erro de Previsão BRICS Mercados Desenvolvidos
Ano:2024
País:Portugal
Tipo de documento:dissertação de mestrado
Tipo de acesso:acesso aberto
Instituição associada:Universidade de Lisboa
Idioma:inglês
Origem:Repositório da Universidade de Lisboa
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author Alexandre, Ana Sofia Pires
author_facet Alexandre, Ana Sofia Pires
author_role author
contributor_name_str_mv Sobreira, Nuno Ricardo Martins
Repositório Científico de Acesso Aberto da ULisboa
country_str PT
creators_json_txt [{\"Person.name\":\"Alexandre, Ana Sofia Pires\"}]
datacite.contributors.contributor.contributorName.fl_str_mv Sobreira, Nuno Ricardo Martins
Repositório Científico de Acesso Aberto da ULisboa
datacite.creators.creator.creatorName.fl_str_mv Alexandre, Ana Sofia Pires
datacite.date.Accepted.fl_str_mv 2024-10-01T00:00:00Z
datacite.date.available.fl_str_mv 2025-02-27T17:51:03Z
datacite.date.embargoed.fl_str_mv 2025-02-27T17:51:03Z
datacite.rights.fl_str_mv http://purl.org/coar/access_right/c_abf2
datacite.subjects.subject.fl_str_mv Stock Markets
Volatility Spillovers
Diebold-Yilmaz
Forecast Error Variance Decomposition
BRICS
Developed markets
Mercados de Ações
Transmissão de Volatilidade
DieboldYilmaz
Decomposição da Variância do Erro de Previsão
BRICS
Mercados Desenvolvidos
datacite.titles.title.fl_str_mv Volatility spillovers among BRICS and developed stock markets: impact of recent global shocks
dc.contributor.none.fl_str_mv Sobreira, Nuno Ricardo Martins
Repositório Científico de Acesso Aberto da ULisboa
dc.creator.none.fl_str_mv Alexandre, Ana Sofia Pires
dc.date.Accepted.fl_str_mv 2024-10-01T00:00:00Z
dc.date.available.fl_str_mv 2025-02-27T17:51:03Z
dc.date.embargoed.fl_str_mv 2025-02-27T17:51:03Z
dc.format.none.fl_str_mv application/pdf
dc.identifier.none.fl_str_mv http://hdl.handle.net/10400.5/98883
dc.language.none.fl_str_mv eng
dc.publisher.none.fl_str_mv Instituto Superior de Economia e Gestão
dc.rights.none.fl_str_mv http://purl.org/coar/access_right/c_abf2
dc.subject.none.fl_str_mv Stock Markets
Volatility Spillovers
Diebold-Yilmaz
Forecast Error Variance Decomposition
BRICS
Developed markets
Mercados de Ações
Transmissão de Volatilidade
DieboldYilmaz
Decomposição da Variância do Erro de Previsão
BRICS
Mercados Desenvolvidos
dc.title.fl_str_mv Volatility spillovers among BRICS and developed stock markets: impact of recent global shocks
dc.type.none.fl_str_mv http://purl.org/coar/resource_type/c_bdcc
description This study analyses volatility spillovers amongst four developed financial markets and four BRICS markets, using the Diebold and Yilmaz (2012) methodology, based on generalized variance decompositions within a VAR framework. The study covers a period from March 2013 to December 2023, focusing on contemporaneous global events, from financial markets turbulences to geopolitical conflicts. The results show evidence that a substantial share of total forecast error variance in volatility is attributable to spillovers. It was found that spillovers primarily occur within developed markets, particularly amongst the USA, UK, and Germany. Spillovers from developed markets to BRICS are also significant, while spillovers from BRICS markets display more isolated levels. Major financial upheavals have profoundly influenced spillover dynamics, increasing volatility transmission to extreme levels. BRICS markets displayed more erratic responses to global shocks, particularly during the COVID-19 pandemic and the onset of the Russia-Ukraine war, reflecting heightened vulnerability. The study also finds that developed markets predominantly acted as net transmitters throughout the period, while BRICS markets acted as net receivers. However, during periods of turmoil, this dynamic shifted, with BRICS markets performing as net transmitters of volatility
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eu_rights_str_mv openAccess
format masterThesis
fulltext.url.fl_str_mv https://repositorio.ulisboa.pt/bitstreams/b28f14c1-3b28-4f06-8fe5-9bf524f1a884/download
id ul_e09fcd5ceb8236adf7d645ae6f315213
identifier.url.fl_str_mv http://hdl.handle.net/10400.5/98883
instacron_str ul
institution Universidade de Lisboa
instname_str Universidade de Lisboa
language eng
network_acronym_str ul
network_name_str Repositório da Universidade de Lisboa
oai_identifier_str oai:repositorio.ulisboa.pt:10400.5/98883
organization_str_mv urn:organizationAcronym:ul
person_str_mv Alexandre, Ana Sofia Pires
publishDate 2024
publisher.none.fl_str_mv Instituto Superior de Economia e Gestão
reponame_str Repositório da Universidade de Lisboa
repository_id_str urn:repositoryAcronym:ul
service_str_mv urn:repositoryAcronym:ul
spelling engInstituto Superior de Economia e Gestãopt_PTThis study analyses volatility spillovers amongst four developed financial markets and four BRICS markets, using the Diebold and Yilmaz (2012) methodology, based on generalized variance decompositions within a VAR framework. The study covers a period from March 2013 to December 2023, focusing on contemporaneous global events, from financial markets turbulences to geopolitical conflicts. The results show evidence that a substantial share of total forecast error variance in volatility is attributable to spillovers. It was found that spillovers primarily occur within developed markets, particularly amongst the USA, UK, and Germany. Spillovers from developed markets to BRICS are also significant, while spillovers from BRICS markets display more isolated levels. Major financial upheavals have profoundly influenced spillover dynamics, increasing volatility transmission to extreme levels. BRICS markets displayed more erratic responses to global shocks, particularly during the COVID-19 pandemic and the onset of the Russia-Ukraine war, reflecting heightened vulnerability. The study also finds that developed markets predominantly acted as net transmitters throughout the period, while BRICS markets acted as net receivers. However, during periods of turmoil, this dynamic shifted, with BRICS markets performing as net transmitters of volatilityapplication/pdfpt_PTVolatility spillovers among BRICS and developed stock markets: impact of recent global shocksAlexandre, Ana Sofia PiresSobreira, Nuno Ricardo MartinsHostingInstitutionOrganizationalRepositório Científico de Acesso Aberto da ULisboae-mailmailto:repositorio@reitoria.ulisboa.ptrepositorio@reitoria.ulisboa.pt2025-02-27T17:51:03Z2024-102024-10-01T00:00:00ZHandlehttp://hdl.handle.net/10400.5/98883http://purl.org/coar/access_right/c_abf2open accessStock MarketsVolatility SpilloversDiebold-YilmazForecast Error Variance DecompositionBRICSDeveloped marketsMercados de AçõesTransmissão de VolatilidadeDieboldYilmazDecomposição da Variância do Erro de PrevisãoBRICSMercados Desenvolvidos2914194 bytesliteraturehttp://purl.org/coar/resource_type/c_bdccmaster thesishttp://purl.org/coar/access_right/c_abf2application/pdffulltexthttps://repositorio.ulisboa.pt/bitstreams/b28f14c1-3b28-4f06-8fe5-9bf524f1a884/download
spellingShingle Volatility spillovers among BRICS and developed stock markets: impact of recent global shocks
Alexandre, Ana Sofia Pires
Stock Markets
Volatility Spillovers
Diebold-Yilmaz
Forecast Error Variance Decomposition
BRICS
Developed markets
Mercados de Ações
Transmissão de Volatilidade
DieboldYilmaz
Decomposição da Variância do Erro de Previsão
BRICS
Mercados Desenvolvidos
status SINGLETON
subject.fl_str_mv Stock Markets
Volatility Spillovers
Diebold-Yilmaz
Forecast Error Variance Decomposition
BRICS
Developed markets
Mercados de Ações
Transmissão de Volatilidade
DieboldYilmaz
Decomposição da Variância do Erro de Previsão
BRICS
Mercados Desenvolvidos
title Volatility spillovers among BRICS and developed stock markets: impact of recent global shocks
title_full Volatility spillovers among BRICS and developed stock markets: impact of recent global shocks
title_fullStr Volatility spillovers among BRICS and developed stock markets: impact of recent global shocks
title_full_unstemmed Volatility spillovers among BRICS and developed stock markets: impact of recent global shocks
title_short Volatility spillovers among BRICS and developed stock markets: impact of recent global shocks
title_sort Volatility spillovers among BRICS and developed stock markets: impact of recent global shocks
topic Stock Markets
Volatility Spillovers
Diebold-Yilmaz
Forecast Error Variance Decomposition
BRICS
Developed markets
Mercados de Ações
Transmissão de Volatilidade
DieboldYilmaz
Decomposição da Variância do Erro de Previsão
BRICS
Mercados Desenvolvidos
topic_facet Stock Markets
Volatility Spillovers
Diebold-Yilmaz
Forecast Error Variance Decomposition
BRICS
Developed markets
Mercados de Ações
Transmissão de Volatilidade
DieboldYilmaz
Decomposição da Variância do Erro de Previsão
BRICS
Mercados Desenvolvidos
url http://hdl.handle.net/10400.5/98883
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