INVITING EXCESS VOLATILITY - OPENING UP A SMALL STOCK-MARKET TO INTERNATIONAL INVESTORS

Authors
SELLIN P
Citation
P. Sellin, INVITING EXCESS VOLATILITY - OPENING UP A SMALL STOCK-MARKET TO INTERNATIONAL INVESTORS, The Scandinavian journal of economics, 98(4), 1996, pp. 603-612
Citations number
12
Categorie Soggetti
Economics
Journal title
The Scandinavian journal of economics → ACNP
ISSN journal
03470520
Volume
98
Issue
4
Year of publication
1996
Pages
603 - 612
Database
ISI
SICI code
0347-0520(1996)98:4<603:IEV-OU>2.0.ZU;2-B
Abstract
What is the effect on asset prices of opening up a small stock market to international investors? In this paper some evidence is found that net purchases of stocks by foreign investors lead to temporary price e ffects in a small stock market. On average, foreign investors' net pur chases of stocks look like noise trading and seem to create some amoun t of excess volatility in the market.