Harmonious stock prices
Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review
|Journal / Publication||Frontiers of Business Research in China|
|Publication status||Published - Jan 2014|
|Link to Scopus||https://www.scopus.com/record/display.uri?eid=2-s2.0-84897781548&origin=recordpage|
Stock price movements in China still remain highly harmonious, in spite of the many significant regulatory and structural changes over the recent years. A survey of the literature reveals that harmony in the stock price movements is related to a few salient features in China's capital market: high ownership concentration, high incidence of the use of pyramidal ownership structure, significant state ownership, and a lack of active institutional investors. In addition, we also point out that harmonious stock prices may generally result from low intensity of private information acquisitions by risk arbitrageurs. © 2014 by Koninklijke Brill NV, Leiden.
- firm-specific information, market efficiency, stock price synchronicity