<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>Over time, research has looked at different aspects of international diversification; such as emerging and frontier markets, use of time-varying framework and more recently at sector diversification within the emerging market and/or developed markets. The diminishing benefit from international diversification led investors to seek new diversification sources especially in the emerging markets that have low integration. The idea of sector diversification, although not directly related to international diversification, has gained renewed attention with the decline in benefits of international diversification (<xref ref-type="bibr" rid="j_fprj-2018-0004_ref_014">Gupta and Basu, 2011</xref>). Our study aims to test the benefits of sector diversification in the Asia-Pacific area using the stock indices in Australia, India, and China. The results from the study suggest that the sector diversification benefits all three markets. It also suggests that the sector diversification is not affected by political background or economic structure.</p>
</abstract>

Over time, research has looked at different aspects of international diversification; such as emerging and frontier markets, use of time-varying framework and more recently at sector diversification within the emerging market and/or developed markets. The diminishing benefit from international diversification led investors to seek new diversification sources especially in the emerging markets that have low integration. The idea of sector diversification, although not directly related to international diversification, has gained renewed attention with the decline in benefits of international diversification (Gupta and Basu, 2011). Our study aims to test the benefits of sector diversification in the Asia-Pacific area using the stock indices in Australia, India, and China. The results from the study suggest that the sector diversification benefits all three markets. It also suggests that the sector diversification is not affected by political background or economic structure.

A Comparative Analysis of Sector Diversification in Australia, India and China

Financial Planning Research Journal

This work is licensed under the Creative Commons Attribution 4.0 International License.

{"article-title":"A Comparative Analysis of Sector Diversification in Australia, India and China"}

Over time, research has looked at different aspects of international diversification; such as emerging and frontier markets, use of time-varying framework and...

A Comparative Analysis of Sector Diversification in Australia, India and China

Published Online: Mar 19, 2024

Page range: 76 - 100

Received: Aug 22, 2017

Accepted: Dec 22, 2017

DOI: https://doi.org/10.2478/fprj-2018-0004

© 2018 Suneel Maheshwari et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.