Download or read book The Impact of Foreign Ownership on Stock Volatility in Indonesia written by Jian-Xin Wang and published by . This book was released on 2008 with total page 21 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study documents a negative relationship between foreign ownership and future volatility of Indonesian stocks. This calming effect of foreign ownership is present before, during, and after the Asian financial crisis. It is independent of gross and net foreign trading and the stock's historical volatility. The effect increases with the level of foreign holdings. The findings are contrary to the volatility impact of institutional ownership in developed markets, and indicate the presence of different economic mechanisms leading to opposite volatility impact from foreign ownership and foreign trading.