Abstract
We study the determinant firm-specific characteristics that influence the revaluation effects of stock market liberalization. Previous studies mostly focus on the market-level effects of stock market liberalization. In this study, we examine the effects of stock market liberalization on the Pacific-Basin countries by performing a firm-level analysis. On average, firms experience positive stock returns after liberalization, which is consistent with the market-level analyses. Consistent with the growth opportunity and the free cash flow hypotheses, we find that the firms with high growth opportunity and/or low cash flow benefit more than those with low growth opportunity and/or high cash flow after stock market liberalization. Moreover, stocks with lower turnover ratio and of smaller sizes gain higher premiums. Our findings provide evidence on the determinant firm-specific characteristics of the revaluation effects due to market liberalization, which has important implications for decision makings in international investment.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
