TY - JOUR
T1 - Valuation effect of capital account liberalization: Evidence from the Chinese stock market
AU - Ding, Haoyuan
AU - Jin, Yuying
AU - Koedijk, Kees G.
AU - Wang, Yunjin
PY - 2020/10
Y1 - 2020/10
N2 - This paper examines the valuation effect of capital account liberalization. Using an event study approach and the policy announcement for RMB Qualified Foreign Institutional Investors (short for RQFII) as the event date, we find that overall, the stock market responded positively to the capital account liberalization announcement. In addition, we provide some heterogeneity that firms with more stringent financing constraints earn higher returns than their counterparts. Finally, existing local institutions play an important role in determining announcement returns.
AB - This paper examines the valuation effect of capital account liberalization. Using an event study approach and the policy announcement for RMB Qualified Foreign Institutional Investors (short for RQFII) as the event date, we find that overall, the stock market responded positively to the capital account liberalization announcement. In addition, we provide some heterogeneity that firms with more stringent financing constraints earn higher returns than their counterparts. Finally, existing local institutions play an important role in determining announcement returns.
KW - Capital account liberalization
KW - China
KW - Financing constraints
KW - Market response
KW - RQFII
UR - http://www.scopus.com/inward/record.url?scp=85084996906&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85084996906&partnerID=8YFLogxK
U2 - 10.1016/j.jimonfin.2020.102208
DO - 10.1016/j.jimonfin.2020.102208
M3 - Article
AN - SCOPUS:85084996906
SN - 0261-5606
VL - 107
SP - 1
EP - 8
JO - Journal of International Money and Finance
JF - Journal of International Money and Finance
M1 - 102208
ER -
