Emerging Economies: Equity and Debt Market

This dissertation provides evidence to support the hypothesis that suggests the investment in emerging markets and the valuation of the emerging equity and debt markets. It examines the close relationship between emerging and developed global markets. Capital structure theories and asset pricing model shows the theoretical point of view while selecting and investing in emerging markets, while empirical analysis based on the integration of the emerging markets with international markets. In order to identify the markets for investment purpose, the mean, median, standard deviation and different time series test such as chow test, unit root test, Johansen test, and error correction model is taken into consideration. The major focus is given to India as an emerging market. Due to lack of time and data, only stock markets integration is tested. Indian stock market such as BSE Sensex and NSE Nifty, where as in global markets Nasdaq, Dow Jones, FTSE, Nikkei and Hang Seng is considered