| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 964704 | Journal of International Money and Finance | 2013 | 20 Pages |
Abstract
This study investigates the relation between large foreign ownership (LFO) and the informativeness of stock prices in 40 markets. We show that LFO is positively related to price informativeness, measured by probability of informed trading (PIN) and price non-synchronicity (NONSYNC) which reflects firm-specific variations in stock returns. We also find a stronger association between stock returns and future earnings innovations for firms with higher LFO. Further analysis reveals that the effect of LFO on price informativeness is stronger in developed economies and markets with strong investor protection and a transparent information environment.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Wen He, Donghui Li, Jianfeng Shen, Bohui Zhang,