The current state of Asia-Pacific stock exchanges: A critical review of market design

Comerton‐Forde, Carole; Rydge, James

doi:10.1016/j.pacfin.2005.05.002

Cited by 62 publications

(29 citation statements)

References 42 publications

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“…Among East Asian countries, the HKSE, that has been established since 1891, is generally considered to have the highest quality in the region. It is classified by the International Finance Corporation as a developed stock market, with the sixth largest total capitalization in the world and the second largest total capitalization in East Asia after Japan (Comerton-Forde & Rydge, 2006). As an order driven, nonspecialist market, the HKSE mitigates private information abuse risk associated with market makers' monopoly power 1 and provides an opportunity to observe order imbalance and identification.…”

Section: Samplementioning

confidence: 99%

Multiple agency perspective, family control, and private information abuse in an emerging economy

2010

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Section: Samplementioning

confidence: 99%

Multiple agency perspective, family control, and private information abuse in an emerging economy

2010

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“…Although this paper focuses on a single market, Hong Kong shares many similarities with other stock exchanges, especially those from emerging economies that adopt the order-driven, non-specialist stock market structure (Comerton-Forde and Rydge, 2006).…”

mentioning

confidence: 99%

“…It also mitigates market structure-related factors such as dealer inventory and market maker monopoly power in observing orders. These both can explain informed trading activities in many developed quote-driven and specialist markets such as the New York Stock 6 Exchange (Comerton- Forde and Rydge, 2006;Stoll and Whaley, 1990;O'Hara and Oldfield, 1986;Brockman and Chung, 2000). In addition, Hong Kong has a high level of family ownership concentration in listed companies and the launch of the Mandatory Provident Fund in 2000 has increased institutional investors' participation in corporate governance 1 .…”

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confidence: 99%

Family control, multiple institutional block-holders, and informed trading

Zhang

Piesse

Filatotchev

2012

The European Journal of Finance

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This paper investigates how large family shareholders and institutional blockholders jointly influence informed trading and firm valuation in the Hong Kong stock market. It combines market microstructure research with studies on the governance roles of multiple block-holders and finds that institutional blockholders rely on their relative controlling power vis-à-vis family owners to mitigate problems associated with informed trading. They also use their ownership rights to improve the structure of informed trading. However, these governance roles are predominantly exercised by pressure-resistant institutional block-holders. Informed trading reduces firm valuation, while an improvement in its structure increases valuation. Therefore, the governance roles of controlling families and pressure-resistant institutional block-holders may have different implications in terms of investors' perceptions of private information risk.JEL Classification: D82, G14, G34

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“…Uniform pricing in each call section determines the transaction price, which attains the greatest trading volume for the market. The TWSE trading mechanism involves using only the call auction for intraday trading and for market openings and closings, which is unique among Asia-Pacific stock exchanges, as Comerton-Forde and Rydge (2006) suggested.…”

Section: Data and Sample Selectionmentioning

confidence: 99%