Valuation effect of capital account liberalization: Evidence from the Chinese stock market.
Capital account liberalization
China
Financing constraints
Market response
RQFII
Journal
Journal of international money and finance
ISSN: 0261-5606
Titre abrégé: J Int Money Finance
Pays: England
ID NLM: 101668728
Informations de publication
Date de publication:
Oct 2020
Oct 2020
Historique:
pubmed:
14
5
2020
medline:
14
5
2020
entrez:
14
5
2020
Statut:
ppublish
Résumé
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.
Identifiants
pubmed: 32398887
doi: 10.1016/j.jimonfin.2020.102208
pii: S0261-5606(20)30164-9
pii: 102208
pmc: PMC7214332
doi:
Types de publication
Journal Article
Langues
eng
Pagination
102208Informations de copyright
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