This paper examined the non-tradable share reform affects ownership structure and figure out how the mechanism relationship between two types of equity agency cost changes. In order to achieve the result, data from listed company is used to analyze the changes of relationship between ownership structure and equity agency cost after non-tradable share reform. The results of the research show non...

We propose a cross-sectional time-series model to assess the impact of market liberalizations in emerging equity markets on the cost of capital, volatility, beta, and correlation with world market returns. Liberalizations are defined by regulatory changes, the introduction of depositary receipts and country funds, and structural breaks in equity capital flows to the emerging markets. We control...

We study the investment behavior of foreign investors in association with an equity market liberalization, and find a strong link between foreigners trading and local market returns. In the period following the liberalization, net purchases by foreign investors induced a permanent increase in stock prices, suggesting that local firms reduced their cost of equity capital. We also find a strong l...