期刊名称：Asian Journal of Business and Management Sciences
电子版ISSN：2047-2528
出版年度：2012
卷号：2
期号：01
页码：07-19
出版社：Society for Business Research Promotion
摘要：The debate as to whether the developments in the foreign exchange markets have repercussions for the stock markets have become one of the tenets in financial economics. This paper argues that although some empirical studies found no relationship between these two important markets, recent developments in the financial world such as the effect of the credit crunch, the cross listing of firms and the movement of investors in stocks and bonds across international borders, the use of the two financial markets as either an alternative or complementary investments establish the fact that the two markets are related. Also the different methodologies for establishing financial variables relationship were analysed and co-integration methods are found to be superior. The paper therefore offers a typology of the different strategies that may be adopted by firms managing such relationship and possible operational risk likely to be posed by each of these markets on the other. Full Text
