International equity flows and developing markets: the asian financial market crisis revisited

The Behavior and Performance of Foreign Investors in Emerging Equity Markets: Evidence from Taiwan

“…Richards (2002) also finds strong evidence that foreign investors engage in momentum trading in Asian emerging equity markets and that foreigners have significant and short-term impacts on emerging markets. However, Lin and Swanson (2004) find, for the eight largest emerging Asian markets, significant evidence that foreign inflows have a short-term positive impact on local market returns but only minimal evidence that foreign investors employ momentum trading. Lee et al (1999), using high frequency intraday data over a three-month period from March to May in 1995, conclude that institutional investors in Taiwan use neither momentum nor contrarian trading strategies.…”

Financial crisis and stock market efficiency: Empirical evidence from Asian countries

“…However, it would be premature to conclude that restricting capital outflows as adopted by Malaysia is an effective way to stabilize the market, as evidence elsewhere suggests that the trading behavior of foreign investors could not be blamed for the collapse of stock markets at the time of the Asian crisis (see, for example, Bowe & Domuta, 2004;Choe, Kho, & Stulz, 1999;Karolyi, 2002;Lin & Swanson, 2004). On the other hand, government direct intervention in the stock market such as those undertaken by Hong Kong might not be a good option, though the often cited reason for this drastic measure is to reduce investors' anxiety and restore investors' confidence in the market (see Su, Yip, & Wong, 2002: 278).…”

The Relationship between Trades of Foreign Institutional and Retail Investors and Equity Return

“…Previous studies on the positive associations between foreign investor's trading activities and equity returns include Adaoglu and Katircioglu (2013), Bohn and Tesar (1996), Brennan and cao (1997), chandra (2012), French (2011), French and Li (2012), French and naka (2013), Froot et al (2001), Grinblatt and Keloharju (2000), Jinjarak, wongswan and Zheng (2011), Lin (2006), Lin and Swanson (2004), Phansatan et al (2012) and Samarakoon (2009). overall, the findings of these studies revealed that foreign equity investors demonstrate positive feedback or momentum trading behaviour in their decisions to buy or sale, respectively.…”

“…with regard to Malaysian equity market, several studies have been carried out to examine the link between foreign equity flows and equity returns such as Bekaert et al (2002), Bohn and Tesar (1996), Froot and Ramadorai (2008), Froot et al (2001), Jinjarak et al (2011), Lin and Swanson (2004) and Lin and Swanson (2008). However, most of these studies used old data of foreign equity flows and low-frequency trade data except that of Froot et al (2001).…”