The impact of foreign ownership on stock volatility in Indonesia

Wang, J

The impact of foreign ownership on stock volatility in Indonesia

Wang, J

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Publication Type:: Journal Article
Citation:: Asia-Pacific Journal of Financial Studies, 2013, 42 (3), pp. 493 - 509
Issue Date:: 2013-01-01

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Field	Value	Language
dc.contributor.author	Wang, J	en_US
dc.date.issued	2013-01-01	en_US
dc.identifier.citation	Asia-Pacific Journal of Financial Studies, 2013, 42 (3), pp. 493 - 509	en_US
dc.identifier.issn	2041-9945	en_US
dc.identifier.uri	http://hdl.handle.net/10453/26406
dc.description.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. © 2013 Korean Securities Association.	en_US
dc.relation.ispartof	Asia-Pacific Journal of Financial Studies	en_US
dc.relation.isbasedon	10.1111/ajfs.12022	en_US
dc.title	The impact of foreign ownership on stock volatility in Indonesia	en_US
dc.type	Journal Article
utslib.citation.volume	3	en_US
utslib.citation.volume	42	en_US
utslib.for	1502 Banking, Finance and Investment	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
pubs.organisational-group	/University of Technology Sydney/Faculty of Business/Finance Discipline
utslib.copyright.status	open_access
pubs.issue	3	en_US
pubs.publication-status	Published	en_US
pubs.volume	42	en_US

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. © 2013 Korean Securities Association.

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http://hdl.handle.net/10453/26406