The impact of foreign institutional traders on price efficiency: Evidence from the Taiwan futures market

Market Return, Liquidity, and Trading Activity of Various Trader Types in the Emerging Market: A Study of the TAIFEX

“…Hao et al . () find similar results. These studies imply that foreign institutional traders may act as liquidity providers on the market, and their findings are similar to our findings that foreign institutional traders are net buyers when the market is illiquid.…”

“…() and Hao et al . () do not address the information role of different traders. Further, for trading patterns, Chou et al .…”

Why and how do foreign institutional investors outperform domestic investors in futures trading: Evidence from Taiwan

“…To further support this idea, Agarwal et al () estimate the trading aggressiveness of foreign and domestic investors and show that it is indeed the aggressiveness of foreign investors’ trading that affects their trading performance, not the information disadvantage. Similarly, using data from the Taiwan futures market, Hao et al () suggest that the trading performance of foreign institutional investors may not be related to the information advantage. Intuitively, if foreign institutional investors realize their information advantage in trading and earn profits, their trading should improve the market efficiency by processing more information.…”

“…Intuitively, if foreign institutional investors realize their information advantage in trading and earn profits, their trading should improve the market efficiency by processing more information. However, Hao et al () find that when foreign institutional investors earn profits in the Taiwan futures market, the price efficiency does not improve over the same period…”

Emerging trends in Asia-Pacific finance research: A review of recent influential publications and a research agenda

“…Researchers have already conducted research in settings such as the Indian, Korean and Taiwanese stock and future markets (Hao et al, 2015;Narayan et al, 2015;Wang and Lee, 2015), but a further expansion into other emerging economies holds promise as well. Researchers have also begun to explore multi-country settings to explore differences in institutional factors, including banking-sector development, bankruptcy code, legal origin system, law enforcement quality, and disclosure quality (Gao and Zhu, 2015), to and control for global, regional and local factors, such as currency appreciation and interest rate differential (Chantapacdepong and Shim, 2015).…”