No abstract

The literature widely documents the negative liquidity impact of foreign participation in firms that permit high foreign institutional ownership. This paper employs a unique setting for the limited participation of qualified foreign institutional investors (QFIIs) in China's A‐share market and examines how this impacts on stock liquidity in emerging markets. Contrary to the findings in the literature, foreign investor participation helps enhance the liquidity of affected stocks by promoting trade activities and price discovery. The improvement in liquidity does not occur through the information friction channel, but rather the real friction channel. Our results are robust to endogeneity issue and the possible influence of the global financial crisis, industry effects and the stock exchange. Further, the liquidity improving effects of QFII are even stronger when the analysis is performed on a subsample of QFII firms.

The nmr kinetic method has been extensively used for the measurement of barriers to internal rotation,6 and in some cases7-13 (see Discussion) it has been possible to determine the barrier as a function of substituent "size" for a limited number of substituents.In the 1,3,5-trineopentylbenzene series 1, we have available a molecular system in which barriers of the same group (tert-butyl) past the substituents H, F, Cl, Br, I, and CHS could be determined. We have previously reported the determination (by complete lineshape analysis) of barriers past chlorine,14•15 bro-

This paper investigates the questions of dynamic portfolio selection and intertemporal hedging within a Markovian regime-switching framework. The investment opportunity set is spanned by a well-diversified home-market portfolio and the riskfree asset. Our results highlight the economic importance of regimes, as optimal portfolio weights are clearly dependent on the prevailing regime. We present evidence that the question of intertemporal hedging is a more complex issue than is hinted in the previous literature, since demand for intertemporal hedging is present in some regimes, but not in others. Finally, our main findings are qualitatively unchanged across the four largest stock markets in the world.

We expand Nakamura's (2005)