An Investigation of the Price Index Convergence Emphasizing on Iran Stock Market
<strong>Objective: </strong>In this research, the hypothesis of convergence of the stock price indices in selected countries over the period from January 2007 to February 2017 has been investigated. <strong>Methods: </strong>Cluster analysis method is used for estimation purp...
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2018-03-01
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doaj-4b69225202f645f280c47f0cb51221f02020-11-25T01:13:07ZfasUniversity of Tehranتحقیقات مالی1024-81532423-53772018-03-0120110712910.22059/jfr.2018.245728.100655067355An Investigation of the Price Index Convergence Emphasizing on Iran Stock MarketAli Fegheh Majidi0Behnaz Nanavay Sabegh1Ahmad Mohammadi2Assistant Prof. of Economics, Faculty of Humanities and Social Sciences, Kurdistan University, Sanandaj, IranMSc. Student in Economic Sciences, Faculty of Humanities and Social Sciences, Kurdistan University, Sanandaj, IranAssistant Prof. of Economics, Faculty of Humanities and Social Sciences, Kurdistan University, Sanandaj, Iran<strong>Objective: </strong>In this research, the hypothesis of convergence of the stock price indices in selected countries over the period from January 2007 to February 2017 has been investigated. <strong>Methods: </strong>Cluster analysis method is used for estimation purposes in the present study. <strong>Results: </strong>The results did not confirm the overall convergence of the stock markets under investigation. However, there are two convergent clusters and one non-convergent (divergent) cluster among those stock markets. The results also showed that Iran stock market doesn’t behave independently and there is a tendency towards convergence with other international stock markets. <strong>Conclusion:</strong> This tendency towards convergence might have taken place through two channels: first; through the effect of international volatility of oil and other commodities on Iran stock market and second; through foreign trade as Iran and its main trading allies lie in the same cluster. We can also claim that financial policymakers should moderate and manage the effects of international financial volatilities on domestic market by implementing policies which can help make domestic market more diversified.https://jfr.ut.ac.ir/article_67355_10d04eed4f261086b2fb473b91fc4ff7.pdfcluster analysisconvergenceprice indexstock marketiran |
collection |
DOAJ |
language |
fas |
format |
Article |
sources |
DOAJ |
author |
Ali Fegheh Majidi Behnaz Nanavay Sabegh Ahmad Mohammadi |
spellingShingle |
Ali Fegheh Majidi Behnaz Nanavay Sabegh Ahmad Mohammadi An Investigation of the Price Index Convergence Emphasizing on Iran Stock Market تحقیقات مالی cluster analysis convergence price index stock market iran |
author_facet |
Ali Fegheh Majidi Behnaz Nanavay Sabegh Ahmad Mohammadi |
author_sort |
Ali Fegheh Majidi |
title |
An Investigation of the Price Index Convergence Emphasizing on Iran Stock Market |
title_short |
An Investigation of the Price Index Convergence Emphasizing on Iran Stock Market |
title_full |
An Investigation of the Price Index Convergence Emphasizing on Iran Stock Market |
title_fullStr |
An Investigation of the Price Index Convergence Emphasizing on Iran Stock Market |
title_full_unstemmed |
An Investigation of the Price Index Convergence Emphasizing on Iran Stock Market |
title_sort |
investigation of the price index convergence emphasizing on iran stock market |
publisher |
University of Tehran |
series |
تحقیقات مالی |
issn |
1024-8153 2423-5377 |
publishDate |
2018-03-01 |
description |
<strong>Objective: </strong>In this research, the hypothesis of convergence of the stock price indices in selected countries over the period from January 2007 to February 2017 has been investigated.
<strong>Methods: </strong>Cluster analysis method is used for estimation purposes in the present study.
<strong>Results: </strong>The results did not confirm the overall convergence of the stock markets under investigation. However, there are two convergent clusters and one non-convergent (divergent) cluster among those stock markets. The results also showed that Iran stock market doesn’t behave independently and there is a tendency towards convergence with other international stock markets.
<strong>Conclusion:</strong> This tendency towards convergence might have taken place through two channels: first; through the effect of international volatility of oil and other commodities on Iran stock market and second; through foreign trade as Iran and its main trading allies lie in the same cluster. We can also claim that financial policymakers should moderate and manage the effects of international financial volatilities on domestic market by implementing policies which can help make domestic market more diversified. |
topic |
cluster analysis convergence price index stock market iran |
url |
https://jfr.ut.ac.ir/article_67355_10d04eed4f261086b2fb473b91fc4ff7.pdf |
work_keys_str_mv |
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