New dimension of asymmetric information in capital inflow composition on ASEAN+3

A stock market microstructure approach

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

This paper examines the effects of asymmetric information on foreign capital inflows. The asymmetric information is captured through stock market microstructure based on the width and depth dimensions in ASEAN+3 countries. Six information asymmetry measuremant was employed to capture the width dimension and depth dimension of information asymmetry. Utilizing the panel data technique, this research shows that the asymmetric information have no affects on the Foreign Portfolio Investment (FPI) capital inflows may be an indication of asymmetric information within the studied region, while other few variables have significantly effect on FPI inflow. These results of the study provide information to policymakers in monitoring capital inflows on the aspect of market transparency and the link with stock market microstructure.

Original languageEnglish
Pages (from-to)353-360
Number of pages8
JournalInternational Journal of Economic Research
Volume14
Issue number16
Publication statusPublished - 1 Jan 2017

Fingerprint

Market microstructure
Asymmetric information
Stock market
Capital inflows
Foreign portfolio investment
Politicians
Market transparency
Monitoring
Information asymmetry
Asymmetry of information
Foreign capital
Panel data

Keywords

  • ASEAN + 3
  • Asymmetry Information
  • Capital Inflow
  • Foreign Portfolio Investment
  • Stock Market Microstructure

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Economics, Econometrics and Finance(all)

Cite this

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title = "New dimension of asymmetric information in capital inflow composition on ASEAN+3: A stock market microstructure approach",
abstract = "This paper examines the effects of asymmetric information on foreign capital inflows. The asymmetric information is captured through stock market microstructure based on the width and depth dimensions in ASEAN+3 countries. Six information asymmetry measuremant was employed to capture the width dimension and depth dimension of information asymmetry. Utilizing the panel data technique, this research shows that the asymmetric information have no affects on the Foreign Portfolio Investment (FPI) capital inflows may be an indication of asymmetric information within the studied region, while other few variables have significantly effect on FPI inflow. These results of the study provide information to policymakers in monitoring capital inflows on the aspect of market transparency and the link with stock market microstructure.",
keywords = "ASEAN + 3, Asymmetry Information, Capital Inflow, Foreign Portfolio Investment, Stock Market Microstructure",
author = "Yaacob, {Mohd Hasimi} and Hawati Janor and {Abdul Rahim}, Ruzita and {Abdul Rahman}, Aisyah and Nor, {Raihan Ashikin Mohd}",
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volume = "14",
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T1 - New dimension of asymmetric information in capital inflow composition on ASEAN+3

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AU - Yaacob, Mohd Hasimi

AU - Janor, Hawati

AU - Abdul Rahim, Ruzita

AU - Abdul Rahman, Aisyah

AU - Nor, Raihan Ashikin Mohd

PY - 2017/1/1

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N2 - This paper examines the effects of asymmetric information on foreign capital inflows. The asymmetric information is captured through stock market microstructure based on the width and depth dimensions in ASEAN+3 countries. Six information asymmetry measuremant was employed to capture the width dimension and depth dimension of information asymmetry. Utilizing the panel data technique, this research shows that the asymmetric information have no affects on the Foreign Portfolio Investment (FPI) capital inflows may be an indication of asymmetric information within the studied region, while other few variables have significantly effect on FPI inflow. These results of the study provide information to policymakers in monitoring capital inflows on the aspect of market transparency and the link with stock market microstructure.

AB - This paper examines the effects of asymmetric information on foreign capital inflows. The asymmetric information is captured through stock market microstructure based on the width and depth dimensions in ASEAN+3 countries. Six information asymmetry measuremant was employed to capture the width dimension and depth dimension of information asymmetry. Utilizing the panel data technique, this research shows that the asymmetric information have no affects on the Foreign Portfolio Investment (FPI) capital inflows may be an indication of asymmetric information within the studied region, while other few variables have significantly effect on FPI inflow. These results of the study provide information to policymakers in monitoring capital inflows on the aspect of market transparency and the link with stock market microstructure.

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