The Impact of Trade Openness and Financial Openness on Information Efficiency of Five ASEAN Countries’ Stock Market 2000-2014

Setyo Nugroho; Dwi Nastiti Danarsari

doi:10.21002/icmr.v11i2.12352

The Impact of Trade Openness and Financial Openness on Information Efficiency of Five ASEAN Countries’ Stock Market 2000-2014

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Abstract

This paper investigates the impact of trade openness and financial openness towards informationefficiency of the ASEAN countries’ stock market. The sample consists of the five most developedstock markets in the ASEAN region – Indonesia, Malaysia, the Philippines, Singapore, and Thailand, covering research period of 2000-2014. This study employs panel data analysis in the model. The result suggests that, when Singapore is excluded from the sample, de facto trade openness has a negative impact on information efficiency, while de facto financial openness has a positive impact on information efficiency. De jure measure is shown to have no significant impact on information efficiency.

Original language	English
Pages (from-to)	130-140
Journal	The Indonesian Capital Market Review
Volume	130
DOIs	https://doi.org/10.21002/icmr.v11i2.12352
Publication status	Published - 30 Jul 2019

Keywords

Efficient Market Hypothesis
Financial Openness
Information Efficiency
Trade Openness

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https://scholarhub.ui.ac.id/context/icmr/article/1113/viewcontent

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title = "The Impact of Trade Openness and Financial Openness on Information Efficiency of Five ASEAN Countries{\textquoteright} Stock Market 2000-2014",

abstract = "This paper investigates the impact of trade openness and financial openness towards informationefficiency of the ASEAN countries{\textquoteright} stock market. The sample consists of the five most developedstock markets in the ASEAN region – Indonesia, Malaysia, the Philippines, Singapore, and Thailand, covering research period of 2000-2014. This study employs panel data analysis in the model. The result suggests that, when Singapore is excluded from the sample, de facto trade openness has a negative impact on information efficiency, while de facto financial openness has a positive impact on information efficiency. De jure measure is shown to have no significant impact on information efficiency. ",

keywords = "Efficient Market Hypothesis, Financial Openness, Information Efficiency, Trade Openness",

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AU - Danarsari, Dwi Nastiti

PY - 2019/7/30

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N2 - This paper investigates the impact of trade openness and financial openness towards informationefficiency of the ASEAN countries’ stock market. The sample consists of the five most developedstock markets in the ASEAN region – Indonesia, Malaysia, the Philippines, Singapore, and Thailand, covering research period of 2000-2014. This study employs panel data analysis in the model. The result suggests that, when Singapore is excluded from the sample, de facto trade openness has a negative impact on information efficiency, while de facto financial openness has a positive impact on information efficiency. De jure measure is shown to have no significant impact on information efficiency.

AB - This paper investigates the impact of trade openness and financial openness towards informationefficiency of the ASEAN countries’ stock market. The sample consists of the five most developedstock markets in the ASEAN region – Indonesia, Malaysia, the Philippines, Singapore, and Thailand, covering research period of 2000-2014. This study employs panel data analysis in the model. The result suggests that, when Singapore is excluded from the sample, de facto trade openness has a negative impact on information efficiency, while de facto financial openness has a positive impact on information efficiency. De jure measure is shown to have no significant impact on information efficiency.

KW - Efficient Market Hypothesis

KW - Financial Openness

KW - Information Efficiency

KW - Trade Openness

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JO - The Indonesian Capital Market Review

JF - The Indonesian Capital Market Review

ER -

The Impact of Trade Openness and Financial Openness on Information Efficiency of Five ASEAN Countries’ Stock Market 2000-2014

Abstract

Keywords

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