Proceedings of Eurasia Business Research Conference
4 - 6 June 2015, Nippon Hotel, Istanbul, Turkey, ISBN: 978-1-922069-77-1
Tina T. He, Wilson X.B. Li and Gordon Y.N. Tang*
Using 7,566 firm-year observations of Chinese listed firms over the period 2003-2008, this study examines the effect of legal systems, regulatory requirements and foreign investors on stock price synchronicity. We find that legal systems and regulatory requirements are negatively associated with stock price synchronicity with the effect of legal systems stronger than regulatory requirements. However, a positive relation between the participation of foreign institutional investors and the stock price synchronicity is found which is inconsistent with the general views in this regard.
JEL Code: G14, G30, K00
Keywords: legal systems, regulatory requirements, foreign investors, stock price synchronicity, China
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Dr. Tina Ting He is at the Division of Business and Management, BNU-HKBU United International College,
Zhuhai, Guangdong, China.
Tel: (0086)756-362-0184 Fax: (0086)756-362-0888 Email: heting@uic.edu.hk
Dr. Wilson Xin Bao Li is at the Division of Business and Management, BNU-HKBU United International
College, Zhuhai, Guangdong, China.
Tel: (0086)756-362-0704 Fax: (0086)756-362-0888 Email: wilsonli@uic.edu.hk
Prof. Gordon Y.N. Tang is at the Department of Finance and Decision Sciences, Hong Kong Baptist
University, Hong Kong.
Tel: (00852)-3411-7563 Fax: (00852) -3411-5585 Email: gyntang@hkbu.edu.hk
*Corresponding author.