Political turmoil and the impact of foreign orders on equity prices

dc.contributor.authorTiniç, Murat
dc.contributor.authorSavaşer, Tanseli
dc.date.accessioned2020-06-18T08:12:56Z
dc.date.available2020-06-18T08:12:56Z
dc.date.issued2020
dc.departmentFakülteler, İşletme Fakültesi, Uluslararası Ticaret ve Finans Bölümüen_US
dc.description.abstractThis paper examines whether foreign investors possess an information advantage over local investors in the Turkish stock market between 2007 and 2015. We find that foreign investors have an information advantage in 24 stocks, corresponding to seven percent of the sample firms. Foreign investors' information advantage tends to prevail primarily during a period of political instability, which started with the Gezi Park protests in June 2013. The adverse selection component of the foreign trade spreads, which reflects a permanent change in stock prices, rises significantly after June 2013, by 66 bps. Our results suggest that domestic investors' funding constraints, which limit their ability to impart their information on stock prices, may give foreign investors a relative information advantage during periods of political turmoil. (C) 2020 Elsevier B.V. All rights reserved.en_US
dc.identifier.citation4
dc.identifier.doi10.1016/j.intfin.2020.101174en_US
dc.identifier.issn1042-4431en_US
dc.identifier.issn1873-0612en_US
dc.identifier.issn1042-4431
dc.identifier.issn1873-0612
dc.identifier.scopus2-s2.0-85078838456en_US
dc.identifier.scopusqualityQ1
dc.identifier.urihttps://hdl.handle.net/20.500.12469/2923
dc.identifier.urihttps://doi.org/10.1016/j.intfin.2020.101174
dc.identifier.volume65en_US
dc.identifier.wosWOS:000536939000013en_US
dc.identifier.wosqualityQ1
dc.institutionauthorTiniç, Muraten_US
dc.language.isoenen_US
dc.publisherElsevieren_US
dc.relation.journalJournal of International Financial Markets Institutions & Moneyen_US
dc.relation.publicationcategoryMakale - Uluslararası Hakemli Dergi - Kurum Öğretim Elemanıen_US
dc.rightsinfo:eu-repo/semantics/closedAccessen_US
dc.subjectInformation asymmetryen_US
dc.subjectMarket microstructureen_US
dc.subjectEmerging marketsen_US
dc.subjectPolitical turmoilen_US
dc.titlePolitical turmoil and the impact of foreign orders on equity pricesen_US
dc.typeArticleen_US
dspace.entity.typePublication
relation.isAuthorOfPublicationaa4f4456-8a8a-43b4-860b-3415380ff06b
relation.isAuthorOfPublication.latestForDiscoveryaa4f4456-8a8a-43b4-860b-3415380ff06b

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