Valuation effect of capital account liberalization: Evidence from the Chinese stock market

This paper examines the valuation effect of capital account liberalization. Using an event study approach and the policy announcement for RMB Qualified Foreign Institutional Investors (short for RQFII) as the event date, we find that overall, the stock market responded positively to the capital acco...

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Detalles Bibliográficos
Autores principales: Ding, Haoyuan, Jin, Yuying, Koedijk, Kees G., Wang, Yunjin
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Elsevier Ltd. 2020
Materias:
Article
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7214332/
https://www.ncbi.nlm.nih.gov/pubmed/32398887
http://dx.doi.org/10.1016/j.jimonfin.2020.102208
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author Ding, Haoyuan
Jin, Yuying
Koedijk, Kees G.
Wang, Yunjin
author_facet Ding, Haoyuan
Jin, Yuying
Koedijk, Kees G.
Wang, Yunjin
author_sort Ding, Haoyuan
collection PubMed
description This paper examines the valuation effect of capital account liberalization. Using an event study approach and the policy announcement for RMB Qualified Foreign Institutional Investors (short for RQFII) as the event date, we find that overall, the stock market responded positively to the capital account liberalization announcement. In addition, we provide some heterogeneity that firms with more stringent financing constraints earn higher returns than their counterparts. Finally, existing local institutions play an important role in determining announcement returns.
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spelling pubmed-72143322020-05-12 Valuation effect of capital account liberalization: Evidence from the Chinese stock market Ding, Haoyuan Jin, Yuying Koedijk, Kees G. Wang, Yunjin J Int Money Finance Article This paper examines the valuation effect of capital account liberalization. Using an event study approach and the policy announcement for RMB Qualified Foreign Institutional Investors (short for RQFII) as the event date, we find that overall, the stock market responded positively to the capital account liberalization announcement. In addition, we provide some heterogeneity that firms with more stringent financing constraints earn higher returns than their counterparts. Finally, existing local institutions play an important role in determining announcement returns. Elsevier Ltd. 2020-10 2020-05-12 /pmc/articles/PMC7214332/ /pubmed/32398887 http://dx.doi.org/10.1016/j.jimonfin.2020.102208 Text en © 2020 Elsevier Ltd. All rights reserved. Since January 2020 Elsevier has created a COVID-19 resource centre with free information in English and Mandarin on the novel coronavirus COVID-19. The COVID-19 resource centre is hosted on Elsevier Connect, the company's public news and information website. Elsevier hereby grants permission to make all its COVID-19-related research that is available on the COVID-19 resource centre - including this research content - immediately available in PubMed Central and other publicly funded repositories, such as the WHO COVID database with rights for unrestricted research re-use and analyses in any form or by any means with acknowledgement of the original source. These permissions are granted for free by Elsevier for as long as the COVID-19 resource centre remains active.
spellingShingle Article
Ding, Haoyuan
Jin, Yuying
Koedijk, Kees G.
Wang, Yunjin
Valuation effect of capital account liberalization: Evidence from the Chinese stock market
title Valuation effect of capital account liberalization: Evidence from the Chinese stock market
title_full Valuation effect of capital account liberalization: Evidence from the Chinese stock market
title_fullStr Valuation effect of capital account liberalization: Evidence from the Chinese stock market
title_full_unstemmed Valuation effect of capital account liberalization: Evidence from the Chinese stock market
title_short Valuation effect of capital account liberalization: Evidence from the Chinese stock market
title_sort valuation effect of capital account liberalization: evidence from the chinese stock market
topic Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7214332/
https://www.ncbi.nlm.nih.gov/pubmed/32398887
http://dx.doi.org/10.1016/j.jimonfin.2020.102208
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