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报告题目:Foreign institutional ownership and liquidity commonality around the world

报告题目:Foreign institutional ownership and liquidity commonality around the world

报 告 人:李 勇,对外经济贸易大学助理教授

讲座时间:2018年5月9号,12:20-13:20

讲座地点:博学925

Bio

Dr. Yong Li is an Assistant Professor at School of Finance, University of International Business and Economics. Yong's research focuses on funds management with particular reference to social responsible investment. His work is published in internationally refereed journals including Journal of Economic and Dynamic Control. His teaching focus is in Financial Mathematics.

Abstract

In this study, we identify the relation between foreign institutional ownership and stock liquidity commonality in 39 countries from 2000 to 2014. Our results show a negative and robust linkage between foreign institutional ownership and global stock liquidity commonality. Corporate transparency is a key mechanism through which foreign institutional investors can reduce stock liquidity commonality. Independent and U.S.-based foreign institutional investors have a greater effect on reducing stock liquidity commonality. Additionally, there is a U-shaped relation between foreign institutional ownership and stock liquidity commonality. Next, we provide evidence that foreign institutional investors mitigate the effects of local culture, exaggerate the impacts of economic policy uncertainty, and substitute the role of a country’s corporate governance level. Finally, it is evident that stock liquidity commonality mediates the relation between foreign institutional ownership and firm valuation. Foreign institutional investors can enhance firm valuation through stock liquidity commonality and stock illiquidity.