Doctor of Philosophy
Using a broad panel of stocks in 46 countries from 2000 to 2012, we examine the impact of global institutional ownership on price efficiency in a worldwide, multi-market framework. We find that foreign institutional investment helps incorporate global information into stock prices and that the contribution toward more efficient stock prices is dependent on the geographical location of the institution. These findings suggest that the mechanism through which prices become more efficient is the industry informational environment emanating from the ecosystem in the country of domicile of active foreign institutional investors. We discover that foreign ownership has a significant impact on price efficiency in 30 out of the 46 countries in our study, including the U.S., highlighting the impact and importance of international institutional investors on the informational efficiency of global stock prices.
Dissertation or thesis originally submitted to ProQuest
Anderson, Kelley, "The Asymmetric Impacts of US and Non-US Institutional Investors in Promoting the Price Efficiency Effect of Foreign Holdings" (2022). Electronic Theses and Dissertations. 3213.