The Changing Role of Foreign Investors in Tokyo Stock Price Formation

2021 ◽  
Author(s):  
Kentaro Iwatsubo ◽  
Clinton Watkins
Keyword(s):  
Stock Price ◽  
Price Formation ◽  
Foreign Investors ◽  
Changing Role

Foreign Investors, External Monitoring, and Stock Price Crash Risk

2019 ◽  
Vol 35 (4) ◽  
pp. 829-853
Author(s):  
Jeong-Bon Kim ◽  
Xiaoxi Li ◽  
Yan Luo ◽  
Kemin Wang
Keyword(s):  
Financial Reporting ◽  
Stock Price ◽  
Reporting Quality ◽  
Crash Risk ◽  
Accrual Quality ◽  
Foreign Investors ◽  
External Monitoring ◽  
Risk Reducing ◽  
Local Firms

We investigate whether foreign investors help to reduce local firms’ future stock price crash risk through their external monitoring. We find that the entrance of foreign investors is associated with a significant reduction in local firms’ future crash risk. Further investigation reveals that foreign investors help to improve local firms’ financial reporting quality from the perspectives of accrual quality, conservatism, and annual report tone management. The evidence is consistent with our conjecture that foreign investors play an important external monitoring role, which reduces managerial bad-news hoarding and thereby lowers local firms’ future crash risk. We also find that the crash risk–reducing role of foreign investors is more pronounced when foreign investors are more familiar with the institutional background of the host country, when they have stronger incentives to monitor local firms, and when local firms have higher governance efficacy. A variety of robustness checks reveals that our results are unlikely to be driven by potential endogeneity.

Strategic Deviation and Stock Return Synchronicity

2018 ◽  
Vol 36 (1) ◽  
pp. 172-194
Author(s):  
Kangtao Ye ◽  
Jenny Xinjiao Guan ◽  
Bo Zhang
Keyword(s):  
Resource Allocation ◽  
Stock Prices ◽  
Stock Price ◽  
Stock Return ◽  
Price Formation ◽  
Specific Information ◽  
Strategic Positioning ◽  
The Relationship ◽  
Industry Peers

We examine the effect of strategic deviation on the relative amount of firm-specific information incorporated into stock prices, measured by stock return synchronicity. Strategic deviation is conceptualized as the extent to which the pattern of a firm’s resource allocation deviates from that of its industry peers. We find that strategic deviation is negatively associated with stock return synchronicity. Using a path analysis, we document that firms following deviant strategy issue more frequent managerial forecasts and have a higher level of block ownership than nondeviant firms, and that both managerial forecasts and block ownership partially mediate the relationship between strategic deviation and stock return synchronicity. Our study contributes to accounting and finance literature by documenting the role of firms’ strategic positioning in the stock price-formation process.

scholarly journals Modelling the Behaviour of Technicians and Fundamentalists in the Shanghai Stock Market

2009 ◽  
Author(s):  
Imad A. Moosa ◽  
Larry CF Li
Keyword(s):  
Stock Market ◽  
Stock Prices ◽  
Stock Price ◽  
Stock Exchange ◽  
Price Formation ◽  
Chinese Stock Market ◽  
Price Effect ◽  
Daily Data ◽  
The Government

This paper provides empirical evidence on the role of fundamentalists and technicians in the Chinese stock market. Three econometric models are used to differentiate the stock price effect between the actions of traders who act on the basis of fundamental analysis and those acting on the basis of technical analysis. The models are estimated using randomly selected monthly and daily data on the stock prices of one hundred companies listed on the Shanghai Stock Exchange. The results reveal that both fundamentalists and technicians have roles to play in stock price formation, although technicians appear to play a more important role. This result holds even if the government intervention is allowed for. Some explanations are presented for the dominance of technicians.  

The changing role of the dental dean

1969 ◽  
Vol 33 (3) ◽  
pp. 355-360
Author(s):  
JA DiBiaggio
Keyword(s):  
Changing Role
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