| Title: |
Legal Systems, Regulatory Requirements, Foreign Investors and Stock Price Synchronicity: Evidence from China |
| Authors: |
Jel Code G |
| Contributors: |
The Pennsylvania State University CiteSeerX Archives |
| Source: |
http://asianfa2012.mcu.edu.tw/fullpaper/10099.pdf. |
| Collection: |
CiteSeerX |
| Subject Terms: |
legal systems; regulatory requirements; foreign investors; stock price |
| Description: |
Using 7,566 firm-year observations of Chinese listed firms over the period 2003-2008, this study examines the effect of legal systems, regulatory requirements and foreign investors on stock price synchronicity. We find that legal systems and regulatory requirements are negatively associated with stock price synchronicity with the effect of legal systems stronger than regulatory requirements, but find a positive relation between the participation of foreign institutional investors and the stock price synchronicity inconsistent with the general views in this regard. Further analyses suggest that the positive relation might be due to the investment strategy adopted by foreign institutional investors that prefer firms with higher leverage ratio, indicating that foreign institutional investors indirectly monitor managers and protect themselves by virtue of the discipline role played by debt holders in a poor investor protection environment. |
| Document Type: |
text |
| File Description: |
application/pdf |
| Language: |
English |
| Relation: |
http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.688.6038; http://asianfa2012.mcu.edu.tw/fullpaper/10099.pdf |
| Availability: |
http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.688.6038; http://asianfa2012.mcu.edu.tw/fullpaper/10099.pdf |
| Rights: |
Metadata may be used without restrictions as long as the oai identifier remains attached to it. |
| Accession Number: |
edsbas.B60AA946 |
| Database: |
BASE |