Download or read book Price Effects of Stock Market Liberalization in Taiwan written by Mario G. Reyes and published by . This book was released on 1997 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: In January 1991, the Taiwan stock Market was partially opened to direct investment by foreign investors. This paper examines the stock price effects of this market liberalization. We use the GARCH methodology to investigate the impact of stock-market liberalization on the distribution of stock returns yielded by the Taiwan Weighted Index over the period 1988-1994. The results show that Taiwan's stock market liberalization has induced some changes in the returns distribution. More importantly, the volatility of stock returns is lower post-liberalization.