Article ID Journal Published Year Pages File Type
963713 Journal of International Money and Finance 2007 25 Pages PDF
Abstract
We examine market responses to earnings announcements in Singapore and Thailand, where shares restricted to local investors trade alongside otherwise identical shares available to foreigners. Our evidence is consistent with foreigners having superior information-processing ability, rather than locals having pre-announcement private information. A small sample of Thai data that identifies trader nationality shows reduced foreign trading in the pre-announcement period and increased buying afterwards, suggesting that foreigners rely on their information-processing skills rather than pre-announcement information.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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