Information transmission across stock indices and stock index futures : International evidence using wavelet framework

Chaker Aloui, Besma Hkiri, Marco Chi Keung Lau, Larisa Yarovaya

    Research output: Contribution to journalArticlepeer-review

    9 Citations (Scopus)

    Abstract

    This paper provides international evidence on dynamic linkages between stock indices and stock index futures using daily data on 11 emerging and developed markets for the period from 3 October 2010 to 3 October 2014. In this study, we focus on the major wavelets tools: individual power spectrum, cross-wavelet power and wavelet coherency. The results show that the co-movement between spot and futures indices reveals an erratic behaviour. The paper also identifies the difference in patterns of comovements for emerging and developed markets, which makes empirical results highly significant for practitioners and policy makers.

    Original languageEnglish
    Pages (from-to)411-421
    Number of pages11
    JournalResearch in International Business and Finance
    Volume44
    DOIs
    Publication statusPublished - 12 Apr 2018

    Bibliographical note

    Publisher Copyright:
    © 2017 Elsevier B.V.

    Copyright:
    Copyright 2018 Elsevier B.V., All rights reserved.

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