EconPapers    
Economics at your fingertips  
 

Shareholding sizes and stock price informativeness

Ai-Yee Ooi, Kian-Ping Lim and Kim-Leng Goh

Applied Economics Letters, 2024, vol. 31, issue 10, 927-933

Abstract: This study examines the relationship between shareholding sizes and stock price informativeness, grounded on the costly acquisition of private firm-specific information. Using data for all non-financial Malaysian public listed companies over the period of 2002–2019, we confirm that the positive relationship between blockholdings and stock price informativeness only holds at the threshold level of 5% and above. Our results provide new evidence that the relationship turns negative for small shareholding sizes, which can be ascribed to the high acquisition costs of private information deterring small shareholders from informed trading. Therefore, regulators and corporate managers should capitalize on modern information technologies to reduce the costs of information acquisition by small investors.

Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/13504851.2022.2156464 (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:taf:apeclt:v:31:y:2024:i:10:p:927-933

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEL20

DOI: 10.1080/13504851.2022.2156464

Access Statistics for this article

Applied Economics Letters is currently edited by Anita Phillips

More articles in Applied Economics Letters from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().

 
Page updated 2025-03-20
Handle: RePEc:taf:apeclt:v:31:y:2024:i:10:p:927-933