Handbook of Conference Proceedings (COES&RJ-SG14-2) (E) Economics Integration in ASEAN: Corporate Valuation in Emerging Markets, Regionalization and Globalization

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.