Management Dissertation Proposal Proforma Research

Management Dissertation Proforma - Research Proposal Example Yes Degree Programme: MBA in Finance & Accounting Specialization Track: General _______ Finance ---X--- Marketing_______ [Please check as appropriate] Other___________________ (please specify) DATE: January 10, 2012Aims of dissertation Background of the research Financial markets across the world have been reporting increasing integration within the as well as across different boundaries. There are several factors that have drastically grown the financial markets in the last decades particularly in the developing countries and some of these factors are globalization, deregulation and advancement in technology (Abraham, Seyyed, and Al-Elg, 2001). Financial markets around the world are not uniform and this is the reason why an investor is able to make more profits then he should have by capitalizing on the opportunity created because of differences in prices (Masih, and Masih, 2002). Gain of one investor would result in the loss of another. However, if these markets are integrated and made uniform then an investor would not be able to make such gains (Stulz, 1981). With the passage of time, financial markets around the world have being integrated among themselves. The term market integration is referred to as a market where there are no obstacles for investors like legal restrictions, taxes, transaction costs etc (Solink, 1974). There are several advantages or benefits for integration among stock market and this is the reason why investors, financial analysts as well as policy markets have been paying considerable attention towards this subject. Some of the most important advantages of market integration are that investors investing in different parts of the world would expect the same amount of return from the investment as arbitrage opportunities would not exist. Also as the expected return would be the same therefore if an investor would like to earn higher return then it would have to take more risk and thus reward to risk ratio would be balanced. Also becaus e of market integration, the overall economy becomes more stabilized. It also encourages more people to make investment as there would be fewer chances of loss of investment as the overall productivity of the country would improve. If the Kuwait market is integrated with the global financial market, then the overall productivity and efficiency of the country would improve and more investment opportunities would emerge in the country. Also this would encourage more local business as well as foreign investors to invest in this market thus the GDP of the country would improve. These are the most important benefits that Kuwait market or any other market would experience if the financial market is integrated with the global market. Integration of financial market has become an important topic in today’s world as investors are able to invest in different markets in order to make the most of the opportunities prevailing in different regions (Kearney, and Lucey, 2004). Different scho lars and researchers have been focusing on this topic and considerable amount of research has already been done in order to analyze the impact of