You are not currently logged in.
Access JSTOR through your library or other institution:
If You Use a Screen ReaderThis content is available through Read Online (Free) program, which relies on page scans. Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
The Effects of International Intermarket Investment Barriers on Asset Pricing: The Case of the Singapore Stock Exchange
Mohamed Ariff and Walayet A. Khan
Quarterly Journal of Business and Economics
Vol. 37, No. 2 (Spring, 1998), pp. 17-31
Published by: Creighton University
Stable URL: http://www.jstor.org/stable/40473239
Page Count: 15
Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Preview not available
This paper examines the effect of unidirectional intermarket investment barriers on asset prices in the Singapore stock market. The results show that identical stocks trade at a significant price difference when legal restrictions on foreign holdings of indigenous equity are binding. Foreign investors are willing to offer a premium, and local investors demand a discount, for otherwise identical stocks. The results from a pooled regression show that the foreign ownership restrictions, relative liquidity, and the correlation between Singapore and world market portfolios explain significantly the cross-sectional variation in the daily price premiums.
Quarterly Journal of Business and Economics © 1998 Creighton University