Friend or foe? Foreign investors and the liquidity of six asian emerging markets

Studying foreign flows and the liquidity of six Asian markets and the Johannesburg Stock Exchange, we provide evidence of two contrary effects of foreigners on liquidity. On the one hand, foreign trade has a negative but transitory impact on the overall liquidity of the market on a daily basis, cons...

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Autores:
Agudelo, Diego A.
Tipo de recurso:
Fecha de publicación:
2010
Institución:
Universidad EAFIT
Repositorio:
Repositorio EAFIT
Idioma:
eng
OAI Identifier:
oai:repository.eafit.edu.co:10784/7658
Acceso en línea:
http://hdl.handle.net/10784/7658
Palabra clave:
Emerging markets
Foreign flows
Liquidity
VAR model
Rights
License
restrictedAccess
id REPOEAFIT2_a90d396086ea2c2cb1f7cf8788bc5910
oai_identifier_str oai:repository.eafit.edu.co:10784/7658
network_acronym_str REPOEAFIT2
network_name_str Repositorio EAFIT
repository_id_str
spelling 20102015-11-06T21:16:32Z20102015-11-06T21:16:32Z2041-9945http://hdl.handle.net/10784/7658Studying foreign flows and the liquidity of six Asian markets and the Johannesburg Stock Exchange, we provide evidence of two contrary effects of foreigners on liquidity. On the one hand, foreign trade has a negative but transitory impact on the overall liquidity of the market on a daily basis, consistent with foreign investors demanding liquidity more aggressively than locals and incorporating market-wide information. On the other hand, the overall share of foreign ownership in the market is positively related to improved liquidity, consistent with foreigners improving liquidity provision and sending a positive signal to the market on transparency and monitoring. Overall, the results portray foreign investors as aggressively demanding liquidity in the very short term, but having a lasting positive effect on the liquidity of emerging markets.engJohn Wiley & Sons, Inc.Asia-Pacific Journal of Financial Studies. Vol. 39, (33), 2010, pp.261-300http://onlinelibrary.wiley.com/doi/10.1111/j.2041-6156.2010.01012.x/abstracthttp://onlinelibrary.wiley.com/doi/10.1111/j.2041-6156.2010.01012.x/abstractrestrictedAccessCopyright © 1999-2015 John Wiley & Sons, Inc. All Rights Reserved.Acceso restringidohttp://purl.org/coar/access_right/c_16ecAsia-Pacific Journal of Financial Studies. Vol. 39, (33), 2010, pp.261-300Friend or foe? Foreign investors and the liquidity of six asian emerging marketsarticleinfo:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionArtículoObra publicadapublishedVersionhttp://purl.org/coar/version/c_970fb48d4fbd8a85http://purl.org/coar/resource_type/c_6501http://purl.org/coar/resource_type/c_2df8fbb1Emerging marketsForeign flowsLiquidityVAR modelEconomía y FinanzasFinanzasAgudelo, Diego A.2a6972ee-40c9-4581-a216-4af5ad58cb6f-1Departamento de Finanzas, Universidad EAFITGrupo de Investigación Finanzas y BancaAsia-Pacific Journal of Financial Studies393326130010784/7658oai:repository.eafit.edu.co:10784/76582024-12-04 11:50:10.861metadata.onlyhttps://repository.eafit.edu.coRepositorio Institucional Universidad EAFITrepositorio@eafit.edu.co
dc.title.eng.fl_str_mv Friend or foe? Foreign investors and the liquidity of six asian emerging markets
title Friend or foe? Foreign investors and the liquidity of six asian emerging markets
spellingShingle Friend or foe? Foreign investors and the liquidity of six asian emerging markets
Emerging markets
Foreign flows
Liquidity
VAR model
title_short Friend or foe? Foreign investors and the liquidity of six asian emerging markets
title_full Friend or foe? Foreign investors and the liquidity of six asian emerging markets
title_fullStr Friend or foe? Foreign investors and the liquidity of six asian emerging markets
title_full_unstemmed Friend or foe? Foreign investors and the liquidity of six asian emerging markets
title_sort Friend or foe? Foreign investors and the liquidity of six asian emerging markets
dc.creator.fl_str_mv Agudelo, Diego A.
dc.contributor.department.spa.fl_str_mv Economía y Finanzas
Finanzas
dc.contributor.author.spa.fl_str_mv Agudelo, Diego A.
dc.contributor.affiliation.spa.fl_str_mv Departamento de Finanzas, Universidad EAFIT
dc.contributor.program.spa.fl_str_mv Grupo de Investigación Finanzas y Banca
dc.subject.keyword.eng.fl_str_mv Emerging markets
Foreign flows
Liquidity
VAR model
topic Emerging markets
Foreign flows
Liquidity
VAR model
description Studying foreign flows and the liquidity of six Asian markets and the Johannesburg Stock Exchange, we provide evidence of two contrary effects of foreigners on liquidity. On the one hand, foreign trade has a negative but transitory impact on the overall liquidity of the market on a daily basis, consistent with foreign investors demanding liquidity more aggressively than locals and incorporating market-wide information. On the other hand, the overall share of foreign ownership in the market is positively related to improved liquidity, consistent with foreigners improving liquidity provision and sending a positive signal to the market on transparency and monitoring. Overall, the results portray foreign investors as aggressively demanding liquidity in the very short term, but having a lasting positive effect on the liquidity of emerging markets.
publishDate 2010
dc.date.issued.none.fl_str_mv 2010
dc.date.available.none.fl_str_mv 2015-11-06T21:16:32Z
dc.date.accessioned.none.fl_str_mv 2015-11-06T21:16:32Z
dc.date.none.fl_str_mv 2010
dc.type.eng.fl_str_mv article
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
dc.type.coarversion.fl_str_mv http://purl.org/coar/version/c_970fb48d4fbd8a85
dc.type.coar.fl_str_mv http://purl.org/coar/resource_type/c_6501
http://purl.org/coar/resource_type/c_2df8fbb1
dc.type.local.spa.fl_str_mv Artículo
dc.type.hasVersion.spa.fl_str_mv Obra publicada
dc.type.hasVersion.eng.fl_str_mv publishedVersion
status_str publishedVersion
dc.identifier.issn.none.fl_str_mv 2041-9945
dc.identifier.uri.none.fl_str_mv http://hdl.handle.net/10784/7658
identifier_str_mv 2041-9945
url http://hdl.handle.net/10784/7658
dc.language.iso.eng.fl_str_mv eng
language eng
dc.relation.ispartof.spa.fl_str_mv Asia-Pacific Journal of Financial Studies. Vol. 39, (33), 2010, pp.261-300
dc.relation.isversionof.none.fl_str_mv http://onlinelibrary.wiley.com/doi/10.1111/j.2041-6156.2010.01012.x/abstract
dc.relation.uri.none.fl_str_mv http://onlinelibrary.wiley.com/doi/10.1111/j.2041-6156.2010.01012.x/abstract
dc.rights.eng.fl_str_mv restrictedAccess
dc.rights.spa.fl_str_mv Copyright © 1999-2015 John Wiley & Sons, Inc. All Rights Reserved.
dc.rights.coar.fl_str_mv http://purl.org/coar/access_right/c_16ec
dc.rights.local.spa.fl_str_mv Acceso restringido
rights_invalid_str_mv restrictedAccess
Copyright © 1999-2015 John Wiley & Sons, Inc. All Rights Reserved.
Acceso restringido
http://purl.org/coar/access_right/c_16ec
dc.publisher.eng.fl_str_mv John Wiley & Sons, Inc.
dc.source.spa.fl_str_mv Asia-Pacific Journal of Financial Studies. Vol. 39, (33), 2010, pp.261-300
institution Universidad EAFIT
repository.name.fl_str_mv Repositorio Institucional Universidad EAFIT
repository.mail.fl_str_mv repositorio@eafit.edu.co
_version_ 1818102435414016000

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