Conclusions

The aim of this study has been to provide empirical evidence regarding four research questions related to the effects on equity market integration and performance of EU accession among European transition economies. The four research questions are derived from existing academic research and address areas which have not yet been explored. The first research question empirically tests the effect on the level of co-movement between equity markets in European transition economies and global as well as European equity indices. The second research question investigates whether there is an impact of the EU accession on the level of influence global and local macroeconomic factors have on equity markets in European transition economies. Jointly, these two questions contribute to the understanding of the later stages of market integration. The last two questions explore the effects of EU accession on the volatility and the return levels of equity markets in transition economies.