How Regulation and Global Standing Shape Stock Market Co‐Movements: A G20 Panel Study

International Review of Finance 2026 Open access

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Authors: Sama Haddad, Rakesh Gupta, E. A. Selvanathan, Saroja Selvanathan, Tarlok Singh
DOI: 10.1111/irfi.70073
Cited by: 1
References: 91

Abstract

ABSTRACT Motivated by post‐2020 fragmentation and underexplored institutional‐geopolitical drivers, we examine how regulatory quality (RQ) and global power (GP) shape stock‐market co‐movements across 17 G20 economies. We estimate time‐varying correlations via ADCC‐GARCH, construct a scaled correlation index, and apply panel ARDL. We find that higher RQ and stronger GP raise long‐run integration; effects appear conditional rather than purely additive. Results are robust to alternative openness proxies (trade vs. GDP). Our contributions are a unified RQ‐GP framework, a correlation index for integration monitoring, and policy‐relevant evidence on how institutional quality and geopolitical standing condition diversification and financial stability.

Fields of Study & Subjects

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Publication details

Journal / source
International Review of Finance
Publisher
Wiley
Volume
26
Issue
2
Publication date
31 March 2026
Language
EN