Internationalization of the Taiwan Financial Industry: Equity Markets, Efficiency and Short-Term Capital Flows

James H. Scott ()
Additional contact information
James H. Scott: Prudential Investment Management, Inc., 4 Gateway Center Two Newark, NJ 07101, USA

Review of Pacific Basin Financial Markets and Policies (RPBFMP), 2001, vol. 04, issue 03, 329-338

Abstract: Strong, developed economies need well-functioning equity markets. Such markets require openness. Open equity markets attract different types of investors, some more useful than others. Just like in the debt market, the equity investors who best serve the social good are those who seek to understand the economic fundamentals underlying corporate profitability. Other, momentum, investors are more like gamblers whose presence is largely unavoidable, and who contribute little to economic efficiency or financial stability. The regulatory challenge is to mitigate the effects of momentum investors without discouraging the fundamental investors.

Keywords: Fundamental and Momentum Investment Styles; Stock Market Regulation (search for similar items in EconPapers)
JEL-codes: G1 G2 G3 (search for similar items in EconPapers)
Date: 2001
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0219091501000449
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:wsi:rpbfmp:v:04:y:2001:i:03:n:s0219091501000449

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0219091501000449

Access Statistics for this article

Review of Pacific Basin Financial Markets and Policies (RPBFMP) is currently edited by Cheng-few Lee

More articles in Review of Pacific Basin Financial Markets and Policies (RPBFMP) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().