Foreign investors and the delay of information dissemination in the Korean stock market
| Autor: | Jangkoo Kang, Hyoung-Jin Park, Kyung Yoon Kwon |
|---|---|
| Rok vydání: | 2016 |
| Předmět: |
040101 forestry
Finance Economics and Econometrics Alternative trading system 050208 finance business.industry 05 social sciences Institutional investor 04 agricultural and veterinary sciences Monetary economics computer.software_genre Domestic market Open outcry Third market 0502 economics and business 0401 agriculture forestry and fisheries Stock market Algorithmic trading business Foreign exchange market computer |
| Zdroj: | Pacific-Basin Finance Journal. 38:1-16 |
| ISSN: | 0927-538X |
| Popis: | This study examines whether foreign investors improve the transmission of global and local market information on individual stock prices in the Korean stock market from 1999 to 2012. We investigate the beneficial effect of foreign investors in the Korean market using the weekly trading data of domestic institutional, individual, and foreign investors. Using the normalized foreign trading share volume as a measure for foreign trading, we find that foreign trading significantly reduces delays in global market information dissemination, along with that of local market information, though not as much as that of global information. Next, we find a more significant relation between foreign trading and delays in information dissemination for global firms with high levels of international trading activity. This indicates that foreign investors are more advantaged than local investors with respect to global information. Finally, the trading of domestic institutional investors reduces delays in local and global information dissemination, but the effect of foreign trading persists, even after controlling for the trading of domestic institutional and/or individual investors. |
| Databáze: | OpenAIRE |
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