Political Turmoil and the Impact of Foreign Orders on Equity Prices

dc.contributor.author Tiniç, Murat
dc.contributor.author Tiniç, Murat
dc.contributor.author Savaşer, Tanseli
dc.contributor.other International Trade and Finance
dc.date.accessioned 2020-06-18T08:12:56Z
dc.date.available 2020-06-18T08:12:56Z
dc.date.issued 2020
dc.department Fakülteler, İşletme Fakültesi, Uluslararası Ticaret ve Finans Bölümü en_US
dc.description.abstract This 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.citationcount 4
dc.identifier.doi 10.1016/j.intfin.2020.101174 en_US
dc.identifier.issn 1042-4431 en_US
dc.identifier.issn 1873-0612 en_US
dc.identifier.issn 1042-4431
dc.identifier.issn 1873-0612
dc.identifier.scopus 2-s2.0-85078838456 en_US
dc.identifier.scopusquality Q1
dc.identifier.uri https://hdl.handle.net/20.500.12469/2923
dc.identifier.uri https://doi.org/10.1016/j.intfin.2020.101174
dc.identifier.volume 65 en_US
dc.identifier.wos WOS:000536939000013 en_US
dc.identifier.wosquality Q1
dc.institutionauthor Tiniç, Murat en_US
dc.language.iso en en_US
dc.publisher Elsevier en_US
dc.relation.journal Journal of International Financial Markets Institutions & Money en_US
dc.relation.publicationcategory Makale - Uluslararası Hakemli Dergi - Kurum Öğretim Elemanı en_US
dc.rights info:eu-repo/semantics/closedAccess en_US
dc.scopus.citedbyCount 6
dc.subject Information asymmetry en_US
dc.subject Market microstructure en_US
dc.subject Emerging markets en_US
dc.subject Political turmoil en_US
dc.title Political Turmoil and the Impact of Foreign Orders on Equity Prices en_US
dc.type Article en_US
dc.wos.citedbyCount 6
dspace.entity.type Publication
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relation.isAuthorOfPublication.latestForDiscovery aa4f4456-8a8a-43b4-860b-3415380ff06b
relation.isOrgUnitOfPublication 16202dfd-a149-4884-98fb-ada5f8c12918
relation.isOrgUnitOfPublication.latestForDiscovery 16202dfd-a149-4884-98fb-ada5f8c12918

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