The impact of foreign ownership on return volatility, volume, and stock risks: Evidence from ASEAN countries
Document Type
Article
Publication Date
1-1-2019
Abstract
This paper aims to delve into the effect of foreign ownership on return volatility, volume, and risk of buying/holding stocks. It uses panel data from six ASEAN countries from 2007 to 2017. There are three primary findings. First, foreign ownership diminishes return volatility, particularly during and after a crisis. Second, it has a positive influence on the trading volume of a stock in the post-crisis, nonetheless negative during a crisis. Third, it reduces the asset and equity risks. However, these beneficial findings could be uniquely different in other ASEAN member economies. In conclusion, the benefits of foreign ownership outweigh the downside to it. © 2019
Keywords
Foreign ownership, Return volatility, Volume, Risk, ASEAN
Divisions
FacultyofEconomicsAdministration
Publication Title
Economic Analysis and Policy
Volume
64
Publisher
Elsevier