An investigation of the benefits of portfolio investment in Central and Eastern European stock markets

C. A. J. Middleton, S. G. M. Fifield, D. M. Power

    Research output: Contribution to journalArticle

    15 Citations (Scopus)

    Abstract

    This paper: (i) examines the potential benefits from diversifying into eight stock markets of Central and Eastern Europe (CEE); and (ii) quantifies the importance of country, industry and time factors in CEE equity returns. The findings suggest that substantial benefits exist from investing in CEE stock markets and that they accrue more from the geographical spread than from the industrial mix of the equities included in the portfolio. However, the returns earned by CEE equities vary dramatically over time. This variability may hamper the efforts of investors attempting to exploit the diversification “free lunch”.
    Original languageEnglish
    Pages (from-to)162-174
    Number of pages13
    JournalResearch in International Business and Finance
    Volume22
    Issue number2
    DOIs
    Publication statusPublished - 2008

    Keywords

    • Portfolio management
    • Investment analysis
    • Stock markets
    • Central Europe
    • Eastern Europe

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