A Closer Look at the characteristics of stock holdings of foreign and local investors in the Indonesian stock exchange (IDX)
Document Type
Journal Article
Publisher
World Scientific Publishing Co. Pte. Ltd.
Faculty
Faculty of Business and Law
School
School of Business / Marketing and Services Research Centre
RAS ID
16978
Abstract
This study provides an overview of the characteristics of stockholdings of foreign and local investors in terms of firm sizes, price levels and liquidity. There are four key findings. First, the IDX is a highly concentrated market and foreign investors dominate the ownership of high market capitalization stocks. Second, foreign investors trade less frequently than domestic counterparts. Third, small, illiquid lower priced stocks dominate this market with domestic individual investors holding most of the stocks with these characteristics. Finally, the paper profits of foreign institutional and domestic individual investors are found to be higher than those of domestic institutional investors.
DOI
10.1142/S2010495213500024
Comments
Sudiman, J. , Allen, D. E., & Powell, R. (2013). A Closer Look at the Characteristics of Stock Holdings of Foreign and Local Investors in the Indonesian Stock Exchange (IDX). Annals of Financial Economics, 8(1). Available here