Information Asymmetry, Speculation and Foreign Trading Activity: Emerging Market Evidence

Posted: 10 Jul 2020

See all articles by Cetin Ciner

Cetin Ciner

University of North Carolina at Wilmington

Ahmet K Karagozoglu

Hofstra University, Zarb School of Business; New York University (NYU) - Volatility and Risk Institute

Date Written: 2008

Abstract

This paper provides evidence on the relation between private-information-based trading and foreign trading activity on the Istanbul Stock Exchange (ISE). We use a recently developed model that utilizes information in volume–return dynamics of individual stocks and show that variables such as size and Tobin's Q explain the extent of speculative activity across firms traded on the ISE. We present evidence supporting the notion that foreign trading activity is associated with informed trading on the ISE. Implications of our findings for emerging markets research are also discussed.

Keywords: information asymmetry, foreign trading, volume-return relationship, speculation

Suggested Citation

Ciner, Cetin and Karagozoglu, Ahmet K, Information Asymmetry, Speculation and Foreign Trading Activity: Emerging Market Evidence (2008). International Review of Financial Analysis, September 2008, v.17, n.4, pp. 664-680. DOI:10.1016/j.irfa.2007.09.003, Available at SSRN: https://ssrn.com/abstract=3629585

Cetin Ciner

University of North Carolina at Wilmington ( email )

Wilmington, NC 28403
United States

Ahmet K Karagozoglu (Contact Author)

Hofstra University, Zarb School of Business ( email )

Department of Finance
148 Hofstra University
Hempstead, NY 11549-1480
United States
(516) 463-5701 (Phone)
(718) 701-8331 (Fax)

HOME PAGE: http://sites.hofstra.edu/ahmet-karagozoglu

New York University (NYU) - Volatility and Risk Institute ( email )

44 West 4th Street
New York, NY 10012
United States

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