International journal of

ADVANCED AND APPLIED SCIENCES

EISSN: 2313-3724, Print ISSN:2313-626X

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 Volume 6, Issue 9 (September 2019), Pages: 38-47

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 Original Research Paper

 Title: Effect of the financial integration on the international diversification gains: The case of GCC markets: Evidence from a conditional ICAPM

 Author(s): Atef Wasli *, Majid Ibrahim AlSaggaf

 Affiliation(s):

 College of Business, University of Jeddah, Jeddah, Saudi Arabia

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 * Corresponding Author. 

  Corresponding author's ORCID profile: https://orcid.org/0000-0003-2741-4644

 Digital Object Identifier: 

 https://doi.org/10.21833/ijaas.2019.09.006

 Abstract:

Our study is focused on investigating whether international financial integration affects international diversification gains into GCC markets by employing a conditional version of the ICAPM. Our findings suggest that GCC markets are not perfectly integrated with the global market portfolio. Our results suggest that diversification gains are important for some GCC markets (KSA, UAE, and Qatar), less important for some others (Oman and Bahrain) and to a loss when we invest in Kuwait. That is, investing in GCC markets can lead to high and attractive benefits especially in UAE and KSA. However, financial crises reduce these gains. 

 © 2019 The Authors. Published by IASE.

 This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).

 Keywords: International financial integration, International financial diversification, GCC markets, Conditional ICAPM

 Article History: Received 23 January 2019, Received in revised form 29 June 2019, Accepted 1 July 2019

 Acknowledgement:

No Acknowledgement.

 Compliance with ethical standards

 Conflict of interest:  The authors declare that they have no conflict of interest.

 Citation:

 Wasli A and AlSaggaf MI (2019). Effect of the financial integration on the international diversification gains: The case of GCC markets: Evidence from a conditional ICAPM. International Journal of Advanced and Applied Sciences, 6(9): 38-47

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 Figures

 Fig. 1 Fig. 2 Fig. 3 Fig. 4 Fig. 5 

 Tables

 Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7

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