Foreign Competition for Shares and the Pricing of Information Asymmetry: Evidence from Equity Market Liberalization
Foreign Competition for Shares and the Pricing of Information Asymmetry: Evidence from Equity Market Liberalization
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DOI：
10.2139/ssrn.2399604
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发表时间：
2018-08
期刊：
影响因子：
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通讯作者：
K. Balakrishnan;Rahul Vashishtha;Robert E. Verrecchia
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文献类型：
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作者：
K. Balakrishnan;Rahul Vashishtha;Robert E. Verrecchia
本文以1996年至2006年23个新兴市场国家的股票市场自由化为例，考察了信息不对称对股票价格的影响。我们发现有证据表明，随着各国取消对外国所有权的监管限制，信息不对称的定价显着下降。我们的研究提供了新的证据之间的联系，股票市场的竞争程度和信息不对称的价格。这项工作也进一步加深了我们对外国人持股的经济后果的理解。
Using the equity market liberalization of 23 emerging market countries between 1996 and 2006, we examine how the degree of competition for a firm's shares affects the price of information asymmetry. We find evidence of a significant decline in the pricing of information asymmetry as countries remove regulatory restrictions on foreign ownership. Our study provides novel evidence on the link between the degree of competitiveness of equity markets and the price of information asymmetry. The work also furthers our understanding of the economic consequences of foreign stock ownership.