European Financial Markets

The Effects of European Union Membership on Central and Eastern European Equity Markets

  • Tony F. Southall

Part of the Contributions to Economics book series (CE)

Table of contents

  1. Front Matter
    Pages i-xviii
  2. Pages 1-10
  3. Pages 11-29
  4. Pages 45-60
  5. Pages 145-158
  6. Back Matter
    Pages 159-189

About this book


EU membership involves political and economic reforms
which influence financial markets in the new member states.
This study empirically explores and quantifies the effects of
EU accession on the risk and return of equity markets in eight
Central and Eastern European markets joining the EU in 2004.
The study also incorporates a review of how the influence of
macroeconomic variables and the level of integration with
global and European markets change as a result of
EU membership.
Based on empirical tests using weekly data over ten years,
this study concludes that EU membership results in a
significant decline in equity market volatility and a
significant increase in risk-adjusted, but not absolute,
equity returns. Furthermore, the study suggests that equity
markets in new EU member states become increasingly
influenced by global rather than local macroeconomic
factors after the EU accession and that the level of integration
with global markets increases.


Central and Eastern Europe EU Integration Equity Market Equity Markets European Equity Markets European Union Financial Market Financial Markets Market Integration

Authors and affiliations

  • Tony F. Southall
    • 1
  1. 1.ZürichSwitzerland

Bibliographic information

  • DOI
  • Copyright Information Physica-Verlag HD 2008
  • Publisher Name Physica-Verlag HD
  • eBook Packages Business and Economics
  • Print ISBN 978-3-7908-2073-7
  • Online ISBN 978-3-7908-2074-4
  • Series Print ISSN 1431-1933
  • Buy this book on publisher's site