Large Foreign Ownership and Firm-Level Stock Return Volatility in Emerging Markets

Li, Donghui; Nguyễn, Quang Ngọc; Pham, Peter K.; Wei, Steven X.

doi:10.1017/s0022109011000202

Cited by 149 publications

(153 citation statements)

References 82 publications

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“…There are possibilities that one firm stock has a high degree of foreign investor investability, but it has a low percentage of foreign ownership. Increasing firm stock investability does not directly increase foreign ownership in that stock (Li et al, 2011).…”

Section: Introductionmentioning

confidence: 90%

“…The results of research conducted by Li et al (2011) show that foreign institutional investors give negative impacts or stabilize stock return volatility. Li et al (2011) argue that foreign institutional investors have similar characteristics as the characteristics of Foreign Direct Investment (FDI).…”

Section: Main Hypothesesmentioning

confidence: 99%

“…Different from foreign investor investability, the percentage of foreign ownership of firm stock represents the actual proportion of foreign ownership. The higher the foreign ownership percentage in one country capital market, the higher the foreign investor participations and activities at the capital market are (Li et al, 2011).…”

Section: Introductionmentioning

confidence: 99%

“…The first research about the impact of foreign ownership on stock return volatility was done by Li et al (2011). Li et al (2011) did research by using Large Foreign Ownership (LFO) as a proxy for capital market liberalization.…”

Section: Introductionmentioning

confidence: 99%

“…Li et al (2011) did research by using Large Foreign Ownership (LFO) as a proxy for capital market liberalization. As further examination, Li et al (2011) also categorized LFO into large foreign ownership in financial institution and non-financial institution. Li et al conclude that examining heterogeneity and understanding each role of foreign investors are important.…”

Section: Introductionmentioning

confidence: 99%

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Competition and Cooperation in Economics and Business

Husodo¹,

Gitaharie²,

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et al. 2017

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Although all care is taken to ensure integrity and the quality of this publication and the information herein, no responsibility is assumed by the publishers nor the author for any damage to the property or persons as a result of operation or use of this publication and/or the information contained herein. Business -Gani et al. (Eds) © 2018 Taylor & Francis Group, London, ISBN 978-1-138-62666-9 v Business -Gani et al. (Eds) © 2018 Taylor & Francis Group, London, ISBN 978-1-138-62666-9 ix Preface This book is one of the five volumes of proceedings that provides an opportunity for readers to engage with selected papers presented at the 1st Asia-Pacific Forum for Research in Social Sciences and Humanities (1st APRISH) conference held in Depok (Indonesia) on November 7-9, 2016. Quoting the theme of the conference "Competition and Cooperation in the Globalized World," this book would be a valuable contribution to get a better understanding of the future global challenges. Readers will find a broad range of research reports on topics ranging from globalization, poverty, population and some macroprudential perspectives on managing the risk of a more integrated world. One of the unique and valuable dimensions of this conference is the capability for blending the chemistries among educators, students, and researchers from around the world to discuss globalization in a broad spectrum. The reader will discover both common challenges and creative solutions emerge from very diverse settings. The relevance of the conference's theme, towards an evidence-based society, for a variety of disciplines, is reflected in the diverse range of papers that have been submitted for publication. These serve to demonstrate the natural attraction of the conference for sharing ideas and findings within an international community. Overall, the conference was undoubtedly very successful. Plenary lectures and presentations were successfully bridging the gap between the different fields of social sciences, making it possible for non-experts in a given area to gain insight into new areas. Also, among the speakers there were some young scientists, namely, doctoral, master's and undergraduate students, who bring new perspectives to their fields. Terms of use: Documents in EconStor may Competition and Cooperation in Economics and Competition and Cooperation in Economics andThe editors would like to thank all those who have contributed to submit full papers for this conference. We rece...

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Section: Introductionmentioning

confidence: 90%

Section: Main Hypothesesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Competition and Cooperation in Economics and Business

Husodo¹,

Gitaharie²,

Gani³

et al. 2017

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The untold story of commodity futures in China

Fan

Zhang

2019

Journal of Futures Markets

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We investigate the behavior of commodity futures risk premia in China. In the presence of retail‐dominance and barriers‐to‐entry, the term structure and momentum premia remain persistent, whereas hedging pressure, skewness, volatility, and liquidity premia are distorted by time‐varying margins and strict position limits. Furthermore, open interest, currency, and inflation premia are sensitive to institutional settings. The observed premia cannot be attributed to common risks, sentiment, transactions costs, or data‐snooping, but are related to liquidity, anchoring, and regulation‐induced limits‐to‐arbitrage. We highlight the distinctive features of Chinese futures markets and assess the challenges posed to theories of commodity risk premia.

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Foreign investor dominance and low domestic investor absorption capacity: Implications on capital outflows

2020

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This study puts forward the increased share of foreign investors as a potential stabilizer for local financial markets, especially equity markets, because domestic investors' weak absorption capacity may create liquidity constraints acting as an obstacle for foreign investor. We pin down the effects of foreign investor dominance based on a detailed stock‐ownership data. Our findings suggest that in emerging financial markets with high foreign investor ownership and low absorption capacity of domestic investors, capital outflows might be staggered, and this phenomenon might reduce the probability of large and sudden depreciation of local currencies.

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Large Foreign Ownership and Firm-Level Stock Return Volatility in Emerging Markets

Cited by 149 publications

References 82 publications

Competition and Cooperation in Economics and Business

Competition and Cooperation in Economics and Business

The untold story of commodity futures in China

Foreign investor dominance and low domestic investor absorption capacity: Implications on capital outflows

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