Stock return comovement and Korean business groups

Cho, Chan Ho; Mooney, Tim

doi:10.1016/j.rdf.2015.09.001

Cited by 7 publications

(1 citation statement)

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“…Price discovery is one of the most significant functions of the stock index futures market. Most of the literature has shown that informed traders often choose to trade in a low-cost futures market [ [5] , [6] , [7] , [8] ], and changes in futures prices often lead to changes in spot prices, a phenomenon that has been extensively studied in the literature. Schreiber & Schwartz [ 9 ] found that price discovery is a process of quickly and effectively integrating market-related information into asset prices and finding equilibrium prices.…”

Section: Introductionmentioning

confidence: 99%

Price guidance and discovery of the Chinese stock index Futures: Based on the rising, falling and fluctuating states

Su¹

2023

Heliyon

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Section: Introductionmentioning

confidence: 99%

Price guidance and discovery of the Chinese stock index Futures: Based on the rising, falling and fluctuating states

Su¹

2023

Heliyon

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Enterprise digital transformation and return comovement of business groups

Liu,

Jin,

Kong

2024

Pacific-Basin Finance Journal

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Political Networks and Stock Price Comovement: Evidence from Network-Connected Firms in China

2022

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In this paper, we examine whether comovement in the stock prices of pairs of Chinese firms connected to the same political network are systematically shaped by the prevailing coordination vs. competition incentives of that network’s politicians. We find strong evidence from 2000 to 2012 (Jiang’s and Hu’s regimes) that stock price comovement is affected by the embeddedness of the firm-politician ties within the network. Among pairs of firms connected to a network through a common politician, we document an increase in stock price comovement. For those pairs of firms connected to a common network via separate politicians (rather than a common politician), we document a relative decrease in stock price comovement. This negative effect suggests that politicians’ relationships within these political networks are generally adversarial rather than cooperative in nature. These results become significantly weaker during Xi’s regime from 2013 to 2017, suggesting that Xi’s anti-corruption campaign and SOE reforms may have attenuated these political network effects on the firms. Our additional tests also show that stock price comovement becomes even more positive (negative) in settings which are expected to increase the coordination or decrease the competition (decrease the coordination or increase the competition) of the politicians.

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Stock return comovement and Korean business groups

Cited by 7 publications

References 32 publications

Price guidance and discovery of the Chinese stock index Futures: Based on the rising, falling and fluctuating states

Price guidance and discovery of the Chinese stock index Futures: Based on the rising, falling and fluctuating states

Enterprise digital transformation and return comovement of business groups

Political Networks and Stock Price Comovement: Evidence from Network-Connected Firms in China

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