Date of Award

Fall 8-2015

Document Type


Degree Name

Master of Science Finance



First Advisor

Dr. John Loughlin

Second Advisor

Dr. Guarango Banerjee

Third Advisor

Dr. Howard Wall


This study serves to research the effect of the introduction of the Euro as a currency on the volatility in the equity market in Belgium. It particularly looks at the Bel20 index volatility, which includes the twenty largest companies listed in the Belgian stock exchange. This study incorporates ordinary least squares regressions with a time series component. Various models with a timeframe between January 1992 and December 2013 are run. The dependent variable of this research is Bel20 volatility, while the independent variables include inflation, consumer confidence, change in industrial production, GDP growth, Euro dummy variables, and a financial crisis dummy variable. The purpose of this study is to see whether or not the introduction of the Euro had an effect on Bel20 volatility and what the sign of the relationship is if one is found. The results show that Bel20 volatility has increased with statistical significance after the introduction of the Euro.