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Economics Integration in ASEAN: Corporate Valuation in Emerging Markets, Regionalization and Globalization

Author

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  • Benno Feldmann

    (University of Applied Sciences Worms, Germany)

  • Wipu Laosirirat

Abstract

The aim of this paper is to study the impact of regional integration and globalization among ASEAN countries in the onset of ASEAN Economics Community through the conceptual framework that combines the company valuation model and the correlation analysis. Regional integration manifests in the co-movement of corporate values across the market, where each of valuation fundamental becomes increasingly driven by the same regional factors. With the higher degree of regional integrated, the companies’ valuation becomes more converge in regional level and more diverge from global level. The extent of transition dynamics of ASEAN markets towards integration is explored with the varied evidence of market correlation across the countries. Results reveal the time-varying nature of the ASEAN integration process that is characterized by diverse transition experience of markets at both the total market and disaggregated industrial sector levels.

Suggested Citation

  • Benno Feldmann & Wipu Laosirirat, 2015. "Economics Integration in ASEAN: Corporate Valuation in Emerging Markets, Regionalization and Globalization," Journal of Business & Management (COES&RJ-JBM), , vol. 3(1), pages 335-347, January.
    • Handle: RePEc:jso:coejbm:v:3:y:2015:i:1:p:335-347
    as

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    References listed on IDEAS

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    1. Ramkishen S. Rajan & Tan Khee Giap & Tan Kong Yam, 2014. "Southeast Asia," Palgrave Macmillan Books, in: Fiscal Sustainability and Competitiveness in Europe and Asia, chapter 6, pages 147-177, Palgrave Macmillan.
    2. Pui Sun Tam & Pui I Tam, 2012. "Rethinking stock market integration: Globalization, valuation and convergence," SFB 649 Discussion Papers SFB649DP2012-052, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
    3. Chua, Choong Tze & Eun, Cheol S. & Lai, Sandy, 2007. "Corporate valuation around the world: The effects of governance, growth, and openness," Journal of Banking & Finance, Elsevier, vol. 31(1), pages 35-56, January.
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