The impact of foreign ownership on stock volatility in Indonesia

Jianxin Wang

Published Paper Series from Finance Discipline Group, UTS Business School, University of Technology, Sydney

Abstract: This study documents the negative relationship between foreign ownership and the future volatility of Indonesian stocks. The calming effect of foreign ownership is present before, during, and after the Asian financial crisis. It is independent of gross and net foreign trading and the stock's historical volatility. The effect increases with the level of foreign holdings. The findings are contrary to the volatility impact of institutional ownership in developed markets, and indicate the presence of different economic mechanisms leading to the opposite volatility impact from foreign ownership and foreign trading.

Pages: 17 pages
Date: 2013-01-01
References: Add references at CitEc
Citations: View citations in EconPapers (7)

Published as: Wang, J., 2013, "The impact of foreign ownership on stock volatility in Indonesia", Asia-Pacific Journal of Financial Studies, 42(3), 493-509.

Downloads: (external link)
https://onlinelibrary.wiley.com/doi/full/10.1111/ajfs.12022 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:uts:ppaper:2013-4

Access Statistics for this paper

More papers in Published Paper Series from Finance Discipline Group, UTS Business School, University of Technology, Sydney PO Box 123, Broadway, NSW 2007, Australia. Contact information at EDIRC.
Bibliographic data for series maintained by Duncan Ford ().