Market Capitalization in Southeast Asia

Market Capitalization in Southeast Asia: A Comparative Analysis of Indonesia and Malaysia (1995-2022).This research by Alvine Dongmo Tebou examines the evolution and interconnection of market capitalizations in Indonesia and Malaysia over nearly three decades. It highlights market capitalization as a vital indicator of financial health and investor confidence.Key events such as the Asian Financial Crisis (1997-1998), the Global Financial Crisis (2008), and the COVID-19 pandemic (2020) are analyzed for their impact on stock market performance and resilience. The study employs Ordinary Least Squares (OLS) regression and the Capital Asset Pricing Model (CAPM) to explore the relationship between the two markets. Using reliable data from sources like the World Bank, the research identifies a strong correlation (Pearson coefficient of 0.899) and reveals Indonesia's significant influence on Malaysia's market capitalization.The findings demonstrate how Indonesia's market growth and Malaysia's financial stability contribute to regional economic integration. For investors, the study offers insights into risk management, while policymakers are guided on enhancing financial stability.

Autorentext
Alvine Dongmo Tebou, MBA, is a consultant specializing in strategic management and data analysis. Graduating from UNIKL Business School in Nov 2024. She received an award for her role as Exco in Academic & International Collaboration. Her research interests include market dynamics in Southeast Asia, focusing on comparative study of regional market.