Effects Of Global Financial Crisis Research Articles

GLOBAL FINANCIAL CRISIS AND NIGERIAN ECONOMIC PERFORMANCE

This study focused on the impact of global financial crisis on Nigeria economic performance proxied with GDP growth rate. Specifically, this study examined the effect of global financial crisis on real GDP growth rate. Data used in the study covered the period 1991 to 2022 and were analyzed with descriptive statistics, Pearson correlation analysis method, as well as Autoregressive distributed lag co-integration approach. Result then revealed that global financial crisis has significant negative and insignificant positive effect on Nigeria economic performance that is the real GDP growth rate in the short run and long run respectively. The study recommended among others that government needs to enhance efforts geared towards technology advancement in the country as well as put in effort in enhancing agricultural products and other production activities in quantity and quality to reduce global financial crisis implication.

Stock and Currency Market Linkages: An Empirical Analysis from Emerging Economies

Purpose: The Causality relationship between forex and stock market in any economy is dependent on its economic fundamentals. This study examines return and volatility linkages between stock and currency markets for 28 emerging economies weekly MSCI stock index values (in local currency) and foreign exchange rates (indirect quotes) from 1988 to 2019. Theoretical Framework: The understanding of the relationship between forex and stock markets through return and volatility spillover will help in predicting behavior of one market on account of the knowledge of movements in another market. Impact of global financial crisis (GFC) on this relationship is another dimension of research. This study finds the causal relationship between forex and stock markets through return and volatility spillover for all emerging economies along with the effect of GFC on the relationship. Design/Methodology/Approach: The empirical analysis is conducted for the total period and three sub-periods namely pre-global financial crisis, crisis, and post-crisis periods by using the Granger Causality test (Granger 1969) followed by Vector Auto Regression (VAR) model and finally the Dynamic Conditional Correlations (DCC), a multivariate model proposed by Engle (2002). The volatility linkages are studied by employing BEKK-GARCH (Baba, Engle, Kraft, & Kroner, 1990) Findings: It is found that return spillovers are predominantly from Stock to forex markets during the pre-crisis and crisis period but from forex to stock market in the post-crisis period. The increasing presence of return relationships from 10 countries in the pre-crisis period to 19 countries during the crisis period, implying a contagion effect. The BEKK-GARCH result confirm that volatility spillovers are observed throughout from forex to stock markets. Research, practical & social implications: More extensive return and volatility associations between stock and forex market after the global financial crisis confirm the increasing importance of economic fundamentals. Return linkages exhibit contagion against the decoupling effect observed in volatility spillovers during the crisis period. Originality/Value: Based on empirical observations, the study attempts to provide important policy implications for Policy makers, global investors, and academic community.

Küresel Finansal Kriz, Covid-19 Pandemisi ve Banka Sahiplik Yapısının Türkiye'deki Takipteki Krediler Üzerindeki Etkileri

Using System Generalized Method of Moments and data for 23 deposit banks over the period 2002-2020 this study aims to investigate the bank-specific and macroeconomic determinants of non-performing loans in Turkey. For a well-functioning banking system, it is important to understand the empirical determinants of non-performing loans. In this context, we particularly focus on the effects of global financial crisis, Covid-19 pandemic, and bank ownership structure on non-performing loans. To provide additional insights, we divide our sample into two as the pre-crisis and post-crisis periods. Our results indicate that both bank-specific and macroeconomic factors play a significant role in explaining the non-performing loans. Moreover, we find a negative impact of Covid-19 pandemic while there is no evidence for any significant impact of the last global financial crisis. More interesting is to note that bank ownership structure does not exert any significant effect on non-performing loans. Furthermore, the determinants of non-performing loans greatly differ in pre-crisis and post-crisis periods. We think that a sound banking and financial system would play a decisive role for allocating financial resources and thus supporting macroeconomic stability.

A meta-analysis of the impact of rail stations on property values: Applying a transit planning lens

• Introduction of 10 new variables to the rail access uplift meta-analysis literature. • Transit expenditure share and network expanse positively impact rail access premiums. • Rent control policies and ethno-racial dynamics affect rail access premiums. • Tests effects of Global Financial Crisis (2007–2009) on rail access premiums. • Expansion of geo-scope of rail access premium comparisons; includes Global South. Access to transit infrastructure is valuable. In areas surrounding rail stations, some of that value gets absorbed by property markets. Since 1970, over 200 case studies worldwide have explored the extent to which transit access impacts property value uplift. However, findings from this body of research vary widely. In an attempt to explain this variation, previous meta-analytic studies have focused on testing the roles that built environment elements, temporal factors, and modelling techniques play in shaping the observed relationship between proximate positioning from rail stations and property pricing. This study expands on these meta-analyses by introducing the first examination of how transit service elements – e.g. frequency, fare, reliability – impact rail-induced residential property value uplift. It further contributes to the literature by expanding the range of geo-comparability of uplift findings across four continents, examining the potential effects of the Global Financial Crisis of the late 2000s, and adding 10 new variables of potential influence not only under the banner of ‘transit service’, but pertaining to neighborhood socio-demographics and housing policy as well. Findings reveal that factors of geography, housing data type, race and ethnicity, rent control policies, rail type, transit cost, and transit network expanse all significantly affect rail access uplift magnitude ranging from depreciating effects of 7.4 percentage points to appreciating effects of 9.6 percentage points. Beyond helping to explain variation across the literature, these findings can be a useful tool for policymakers combatting trends of increasing market-driven displacement from transit-rich areas, those pursuing financing mechanisms for transit infrastructure, and to transit planners concerned with how their decisions may affect matters of housing equity for the communities they serve.

Causes, Effects and Prevention of Global Financial Crisis in Viewpoint of Islam

Global financial crisis is not a new phenomenon. The world has witnessed financial crisis since many centuries. The repetition of global financial crisis reveals that global financial setup is not stable thus, prone to frequent financial crisis. However, zero interest rate policy has been launched by developed countries in order to offset the effects of global financial crisis but to date the issue of financial and monetary instability has not been overcome. Interest rate as the main component of financial setup has adversely affected the permanent solution to global financial crisis. The study is undertaken to analyze the effect of interest rate (riba) in propagation of global financial crisis and to analyze the alternate financial mechanism to prevent global financial and economic crisis on permanent basis. However, the qualitative research methodology is pursued to build a conceptual framework by applying inductive paradigm to address the issue of understanding the rationale behind the prohibition of interest based financial paradigm particularly regarding Islamic perspective. The expected outcome suggests that man-made laws in order to subside divine laws in financial paradigm have given rise to financial, ethical and economic crisis. Global financial crisis is the outcome of easy access to credit, abundance of loans upon interest, speculation, greed as well as corruptive motives to exploit each other

FINANCIAL LIBERALIZATION, DEMOCRATIC INSTITUTIONS, AND INCOME INEQUALITY: NEW INSIGHTS FROM PAKISTAN

This study investigates the relationship between financial liberalization, democratic institutions, and income inequality in Pakistan by using a two-state Markov switching (MS) methodology for the period 1972–2017. The dynamic factor modelling approach is used to construct the financial liberalization index. The impact of the Global Financial Crisis (GFC) of 2007–2008 on financial liberalization–institutions–inequality nexus was checked using the Chow breakpoint test. The result reveals no significant effect of GFC on Pakistan’s economy. Results from the MS model divulge that financial liberalization lessens income inequality in the high-income inequality regime as well as in the low-income inequality regime. The result further discloses that democratic institutions enhance income inequality in high-income inequality regimes while reduce income inequality in the low-inequality regime. While studying the joint role of democratic institutions and financial liberalization, it is observed that the weak role of democratic institutions offsets the benefits of financial liberalization in the high-income inequality regime; however, institutions and financial liberalization are supportive in reducing income inequality in the low-inequality regime. Besides, the results also confirm the existence of Kuznets hypothesis in Pakistan. Therefore, there is a need for further reforms to revamp institutions to reduce income inequality in Pakistan.

Characterizing India’s Financial Cycle

The severity of the effects of global financial crisis resuscitates the need for assessing the macro-financial linkages and measuring financial cycle to prevent the economy from major financial shocks. Our article measures financial cycle by using turning point analysis, spectral analysis and band-pass filter and provides the evidence on the existence of financial cycle in India. We find the length and duration of cycles in financial variables are much greater as compared to the business cycle. While both credit and equity prices drive financial cycles over time, the contribution of house prices has increased since mid-2000s. We find that the expansionary phase of the financial cycle provides an early warning signal about stress build-up in the banking sector and impending depress in the economy. JEL Codes: C22, E30, E44, E58, G18

The Effect of Global Financial Crisis and Ethiopian Monetary Policy Measures: Review on the pre-and post-crisis scenario

Policymakers and leaders usually fail to grasp a sound lesson from the eco- nomic hurdles and crises countries face. This paper, thus, is intended to review and articulate the causes and effects of the global financial crisis, and how the Ethiopian monetary policy reacted and mitigated the crisis. The data for the analysis were collected from various sources including IMF, World Bank, National Bank of Ethiopia, and research articles from 2003 to 2019. The review reveals that even during the crisis in 2009, Ethiopia was among the top five fastest-growing countries in the world by an average of 10.5%, which is twice the average growth of Sub-Sahara African countries (5 %). It had become the seventh-largest economy in Africa and the 69th in the world with a GDP PPP of 118.2$ Billion as of 2013. Some of the main reasons for the con- tinued growth of the country amid crisis could be the desynchronization of the country’s financial market with the international financial market, an insig- nificant share of mortgage loans in domestic financial sector services, and high-level government-led infrastructure investment coupled with China’s economic alliance. However, the significant effect of the crisis was observed in the country’s exports, remittance, and Foreign Direct Investment (FDI). To shun the related inflationary effect, the government increased the minimum deposit interest rate, reserve, and liquidity requirements, and reinstated the credit restrictions. Also, the immediate alert was given to commercial banks to give proper attention in managing credit risk and reducing non-performing loans to below 5% and overdraft facilities. Given the above-mentioned facts, the monetary policy measures were effective to stabilize the economy & sus- tain the growth. In the end, the offshoots & setbacks of the unsynchronized financial market, government-led investment & fettered mortgage loans are addressed, and the way forward is marked out.

The effect of global financial crisis on banking stocks: evidence from Indonesia Stocks Exchange

The effect of global financial crisis on banking stocks: evidence from Indonesia Stocks Exchange

The effect of global financial crisis on banking stocks: evidence from Indonesia Stocks Exchange

An interesting aspect of the public information arrival effect that has not been covered is the impact of global financial crisis (GFC) on banking stocks in Indonesia. The aim of this research is to investigate market reaction of banking stocks at the Indonesia Stocks Exchange (IDX) towards economic events on GFC regarding the events of the bankruptcy of Lehman Brothers on 15 September 2008 and the closing of IDX on 8 October 2008. In this research, the researchers conduct event study to explore the reaction of stock market regarding of these events on banking stocks. The results of this study find that there was a weak impact of the Lehman Brothers collapse towards banking stocks, however, there was a pretty strong impact of the IDX closure towards banking stocks at IDX.

A theoretical review of burnout syndrome and perspectives on burnout models

With the negative effects of global financial crisis in 2008-2009 and recent Covid 19 pandemic, the need for stress management for individuals and business organizations is significantly increasing. However, the latest advances in digitalization and digital transformation of service companies are reshaping and redesigning the working conditions. This study aimed to explain how stress and burnout syndrome affects the individuals and business organizations. It is also aimed to maintain a theoretical perspective on burnout syndrome models. Main contribution of the paper to literature is its theoretical perspective with fundamental theories and models of burnout syndrome.

International stock markets Integration and dynamics of volatility spillover between the USA and South Asian markets: evidence from Global financial crisis

PurposeThe purpose of this paper is to investigate the cointegration and volatility spillover dynamics between the USA and South Asian stock markets, namely, India, Pakistan and Sri Lanka. The main objective of this study is to provide the knowledge about integration of financial market and volatility spillovers before, during and after global financial crisis to investors, fund managers and policy-makers.Design/methodology/approachThe Johansen and Juselius cointegration test, Granger Causality test and bivaraite EGARCH model have been applied in this study to examine integration and volatility spillovers between selected stock markets.FindingsThe findings show that long-term integration between the USA market and South Asian emerging stock markets. It is found that USA stock market has causal relationship with emerging stock markets in short-term. The findings of EGARCH model reveal that asymmetric volatility spillover effects significant in all selected stock markets in pre, during and post-crisis periods. Furthermore, significant volatility spillover is found from stock markets of USA to all selected South Asian markets during and post-crisis periods. However, volatility spillovers from USA to India and Sri-Lanka markets are significant, while insignificant in case of Pakistani market in pre-crisis period. Overall, we find that returns and volatility spillover effects are higher in financial crisis period as compared to non-financial crisis period.Practical implicationsThe findings of this paper have important implications for investors, portfolio managers and policy-makers. They can take potential benefits from international portfolio diversification by considering all these facts. The understanding and knowledge of across volatility transmission help them to maximize the gains from diversification and minimize the risk. Policy-makers can develop such strategies which protect the markets of these economies from future financial crisis.Originality/valueAlthough in finance literature numerous studies have been conducted on integration between different stock markets, most of the studies investigated the integration and volatility spillovers between developed stock markets. However, many studies also analyzed the integration among emerging stock markets in literature review but it is hard to find studies in the context of South Asian stock markets on the effect of global financial crisis on stock markets. The main contribution of this study is to investigate the stock markets integration and volatility transmission between the USA and South Asia by considering the effect of recent 2007 US subprime financial crisis.

The effects of global financial crisis on the relationship between CEO compensation and earnings management

PurposeThis paper aims to examine the effects of global financial crisis (GFC) on chief executive officers’ (CEO) compensation and earnings management relationship. Specifically, the authors examine whether the recent financial crisis had moderated the relationship between CEO bonus and discretionary accruals.Design/methodology/approachThe authors use panel data for 1,800 firm-year observations (over a period of six years from 2005 to 2010) and use univariate and multivariate tests to test their hypothesis. The authors divide the period into pre-crisis, during-crisis and post-crisis periods to examine how the different financial crisis periods affect the relationship between CEO compensation and earnings management. Various alternative tests including endogeneity test suggest that the results are robust.FindingsThe authors’ multivariate results indicate that the relationship between CEO’ compensation and earnings management changes because of the GFC.Practical implicationsThe findings, therefore, justify more monitoring and scrutiny to limit the existence of opportunistic managerial behaviour and for the appropriate designing of CEO compensation packages during abnormal economic circumstances.Originality/valueSo far as the authors’ knowledge goes, this is the first study which examines the relationship between CEO compensation and earnings management during GFC.

The Effect of Global Financial Crisis on Stock Market Returns in Ghana

The Global financial crisis which started in 2007 in USA had several effects on the country and other developed economies. The objective of our study was to examine the effect of global financial crisis on stock market returns from the perspective of a developing country such as Ghana. Data was taken from the Bank of Ghana (BOG) for the period of 2000-2013 using annual time series while using Ordinary Least Square (OLS) estimation approach for the regressions. The findings per the regression and our analysis indicated that for most part, financial crisis positively affected Ghana stock market although there also an evidence that, it may have a negative effect. Thus, the impact of financial crisis on stock market returns in Ghana is inconclusive and depends on the model specification. Exchange rate depreciation and trade openness also negatively affected the stock market returns in Ghana. However, financial development proxy by private credit and inflation positively affects the stock market returns in Ghana. Moveover, reduction in investment and savings from local and foreign investors, drop in remittance and higher price financial flow from international financial market as well as a stagnant growth of the financial market and declined external demand for Ghana export are the implications of financial crisis on Ghana stock market returns. Furthermore, government should liberalize their stock market more international in order to attract foreign investors and also government should stabilize prices and maintain balance of payment equilibrium. However, the general public should be made aware on the negative effect of global financial crisis on the stock market returns.

The Effect of Global Financial Crisis on the Financial Performances of Commercial Banks of Ethiopia

The 2007 financial crisis, triggered at the United States of America, affected many financial institutions around the world. In Ethiopia, some scholars argue that Commercial banks of Ethiopia (CBE) are not vulnerable for global financial crisis. Because, Commercial banks of Ethiopia are owned by state and domestic investors and the country does not allow foreign banks to operate in the country. In line with this argument, this study sought to investigate the effect of global financial crisis on the financial performances of commercial Banks of Ethiopia. The study used judgmental sampling method, taking in to account the age and accessibility of complete audited financial statements. The sample size of the study was two state owned and five private commercial banks. The study dominantly used secondary data. So as to triangulate results, the study also employed primary sources of data. To measure and analyze performance of commercial banks during the periods 2004-2010, CAMEL model and SPSS statistical tools were employed. The study found that the banks had had liquid and quality asset during the crisis. But among the growth mean deference of six variables of international banking related activities, only two variables (Deposit in Foreign Banks and Gain from Foreign Currency Translation and Exchange) had positive growth mean during the global financial crisis; the change was not statistically significant at 5% significance level. Whereas loan dispersed for importers (LI), interest income from foreign deposit, ROA, total revenue from international banking actives had been decreased by 214%, 217%, 16% and 39% respectively. These changes were statistically significant at 5%. Thus the study concluded that, despite CBE were owned by state and domestic investors and international banks has been prohibited to operate in Ethiopia, the financial crisis significantly affected the financial performances of Ethiopia banking industry. Keywords: Global Financial crisis, financial performance, commercial banks of Ethiopia, CAMEL DOI : 10.7176/RJFA/10-22-01 Publication date: November 30 th 2019

An Analysis of the Effect of Global Financial Crisis on the Expectation Hypothesis of the Term Structure of Interest Rates in the Korean Bond Market

글로벌 금융위기로 세계의 금융시장은 크게 변화하였다. 본 연구는 이자율의 기간별 구조이론을 설명하는 기대가설에 입각하여 글로벌 금융위기 전후로 한국의 채권시장이 어떻게 변하였는지를 분석하였다. 기대가설에 따르면 채권시장의 선도이자율은 미래 단기이자율의 기댓값으로 해석할 수 있다. Fama, Bliss(1987)는 기대가설을 검정하기 위하여 선도이자율이 채권의 초과수익률을 설명할 수 없다는 가정 하에 회귀방정식을 사용하여 기대가설을 검정하였다. 본 연구에서는 Fama, Bliss(1987)의 회귀방정식을 사용하여 글로벌 금융위기 전과 후를 두 기간으로 나누어 기대가설을 검정하였고 글로벌 금융위기 전에는 통계적으로 기대가설을 반증하는 결과가 나타난다. 이러한 기대가설을 반증하는 결과는 금융시장에서 차익거래가 존재한다고 해석할 수 있고 이것을 채권시장의 이상 현상(anomaly)이라고 해석할 수 있다. 글로벌 금융위기 이후는 통계적으로 기대가설을 반증하는 결과가 줄어드는 실증분석 결과를 볼 수 있다. 그러므로 글로벌 금융위기 전후로 기대가설의 검정의 결과가 시간에 따라 변하였다고 할 수 있고 글로벌 금융위기 전후로 회귀계수가 변화되었음을 Chow 검정을 통하여 보여주었다. 따라서 통계적으로 글로벌 금융위기 전후로 한국의 채권시장의 기대가설의 증거는 변하였다고 해석할 수 있고 한국의 채권시장이 글로벌 금융위기 이후 차익거래 기회가 줄어들고 이상 현상이 줄어들어 채권시장이 더욱 투명해지고 효율적으로 변하고 있다고 해석할 수 있다.According to the expectation hypothesis, the forward rate of interest is an unbiased expectation of future spot rates and excess returns cannot be explained by the forward rates. The global financial crisis had changed many things in the financial market. This paper empirically tests whether the expectation hypothesis changes during the global financial crisis. Using the Korean bond data, we apply the Fama-Bliss regression to test whether forward rates predict excess returns before and after the 2008 financial crisis. We find statistically significant evidence against the expectation hypothesis in the pre-period of the financial crisis. But, the expectation hypothesis is not rejected in the post-period. We also show that the Fama-Bliss regression results change significantly before and after the crisis based on the Chow test. The evidence against the expectation hypothesis can be understood as an anomaly. Therefore, our result means that anomalies in the financial market tend to be diminished after the global financial crisis.

Real interest rate, income and bank loans: panel evidence from Egypt

Purpose This paper aims to examine the effectiveness of monetary policy on bank loans in Egypt using generalized method of moments (GMM) model. Also, it investigates the impact of bank level variables, namely, total assets, liquidity, capital and income on bank loans. It develops the equation of loans, which is introduced by Ehrmann et al. (2002) using bank level variables such as income and the interaction between income and interest rate. Design/methodology/approach This paper examines the impact of monetary policy shocks on bank loans in Egypt by applying the GMM technique and panel data from 1996 to 2014. Findings The results reveal that real interest rate has a significant impact on bank loans, which indicates that the bank lending channel is effective in Egypt. Furthermore, the bank level variables, namely, banks’ size, liquidity and income have significant effects on bank loans in Egypt, which sustains the heterogeneous effect of monetary policy on bank loans. Therefore, the Central Bank of Egypt (CBE) can adjust interest rate to influence the bank loans and total demand. Research limitations/implications It does not examine the effect of monetary policy on small and large banks in Egypt. Practical implications The policy implications from this paper indicate that the monetary authority in Egypt should adjust interest rate to stabilize the bank loan supply. By stabilizing the bank loans, the monetary authority is able to stabilize investment, consumption and total demand. Social implications The relevance of bank lending channel indicates that the role of commercial banks is very important in transmitting monetary policy shocks to the real sector. Originality/value It is important for the CBE, banks and people because it shows the effectiveness of bank lending channel and the effect of global financial crisis on the Egyptian economy.

DID GLOBAL FINANCIAL CRISIS WORSEN OIL PRICE VOLATILITY AND BANKING SECTOR NEXUS IN SELECTED ECOWAS AND G-7 MEMBER COUNTRIES?

This study examined the effects of global financial crisis on oil prices and its relationship with banking sector in selected ECOWAS and G-7 group for the period 2000 to 2018. The data for the study were collected from the WDI (2019). Following the work of Driscoll & Kraay (1998), the study adopted panel fixed effect estimation techniques. Since financial crises affect mostly the banking system and banking reforms is reflected in the lending interest rate which is a positive contributor to the rate of investment growth, we therefore estimated the model using investment as the dependent variable. The results show that the lending interest rates exert positive impact on the rate of investment growth for G7 countries. Furthermore, we observed that 1% drop in interest rate would cause investment to grow by about 0.0378% for the ECOWAS region. The interaction of the international oil prices and the rate of inflation express the cost of production in the regions. Thus, it was found that a 1 percent increase in the cost of production would cause a fall in the level of investment growth by 0.000029% and 0.000058% for the G7 and ECOWAS respectively. This result though was found not to be significant, thus not reliable. In G7 and ECOWAS, growth in output was found to positively and significantly influence the growth rate of investment.

Capital and Liquidity Risks and Financial Stability: Pre, During and Post Financial Crisis Between Islamic and Conventional Banks in GCC Countries, in the Light of Oil Prices Decline

Purpose: The main purpose of this paper is to investigate the impact of capital ratio and liquidity risks and the effects of the Global Financial Crisis (GFC) periods on financial stability of conventional and Islamic banks before, during, and after GFC in the year of 2008 five GCC countries. To examine empirically the comparison between conventional and Islamic banks based on financial stability and soundness, as well as capitalization and liquidity in the light of the adverse effects of GFC and oil prices declining during the period of (2000-2017).Design/methodology/approach: By using time series data, this study employs Pedroni’s panel cointegration analysis to test the long run relationship between financial stability of conventional banks and Islamic banks as a dependent variable and independent variables including financial crisis under three periods; pre (2006-2007), during (2008-2009) and post (2010-2011) crisis. As well as employing Generalized Least Squares (GLS) to examine the effects between independent variables which are GDP, inflation, financial crisis periods, oil prices fluctuations risk, banking competition, financial sector development, liquidity risk and capital adequacy ratio and dependent variable which is financial stability of conventional and Islamic banks in GCC countries before (2000-2006) during (2006-2009) and after (2010-2017) crisis.Findings: The findings of this research suggest that there is a long run relationship between financial stability of conventional and Islamic banks and capital ratios, liquidity risk and other independent variables. As well as study’s findings support some previous studies and it generally concludes that Islamic banks were performed better during the crisis than conventional banks. Whereas Islamic banks were more stable during crisis as their business model helped to limit the adverse effects of crisis in 2008, they were also more capitalized and less exposure to liquidity risk. Nevertheless, decrease in Islamic banks’ liquidity led some Islamic banks in GCC countries to declare significant losses in 2009.Originality/value: The result of the study contributes towards understanding the determinants of financial stability of both Islamic banks and conventional banks during financial crisis periods. It is important for policy ramifications by the Central Banks in GCC in terms of treating both types of banks differently to mitigate against future financial crises.

Financial cointegration and spillover effect of global financial crisis: a study of emerging Asian financial markets

This paper examines the financial cointegration and spillover effect of the global financial crisis to emerging Asian financial markets (India, China, Pakistan, Malaysia, Russia and Korea). The analysis used daily stock returns, divided into three time periods: pre-, during and post-crisis from 1 July 2005 to 30 June 2015. We applied the Johansen and Juselius cointegration test, the vector error correction model (V.E.C.M.) and the G.A.R.C.H.-B.E.K.K. model for an examination of integration and conditional volatility. We find long-term cointegration between the U.S. market and emerging stock markets, and the level of cointegration increased after the crisis period. The V.E.C.M. and impulse response function reveal that a shock in the U.S. financial market has a short-term impact on the returns of emerging financial markets. Past shocks and volatility have more effect on the selected stock markets during all time periods. The Korea Composite Stock Price Index and the Bombay stock exchange (B.S.E.) are the only stock markets that have cross-market news and volatility spillover effects during the crisis period. After the crisis period, news effects are positive on the B.S.E. and the Russian Trading System and have a negative effecton the Kuala Lumpur Stock Exchange and the Shanghai Stock Exchange.