Ooi, Ai-Yee and Lim, Kian Ping and Goh, Kim Leng (2024) Shareholding sizes and stock price informativeness. Applied Economics Letters, 31 (10). pp. 927-933. ISSN 1350-4851, DOI https://doi.org/10.1080/13504851.2022.2156464.
Full text not available from this repository.Abstract
This study examines the relationship between shareholding sizes and stock price informativeness, grounded on the costly acquisition of private firm-specific information. Using data for all non-financial Malaysian public listed companies over the period of 2002-2019, we confirm that the positive relationship between blockholdings and stock price informativeness only holds at the threshold level of 5% and above. Our results provide new evidence that the relationship turns negative for small shareholding sizes, which can be ascribed to the high acquisition costs of private information deterring small shareholders from informed trading. Therefore, regulators and corporate managers should capitalize on modern information technologies to reduce the costs of information acquisition by small investors.
| Item Type: | Article |
|---|---|
| Funders: | Faculty of Business and Economics, Universiti Malaya |
| Uncontrolled Keywords: | Block ownership; Malaysia; Shareholding sizes; Small shareholders; stock price informativeness |
| Subjects: | H Social Sciences > HC Economic History and Conditions H Social Sciences > HG Finance |
| Divisions: | Faculty of Business and Economics Faculty of Business and Economics > Department of Decision Science |
| Depositing User: | Ms. Juhaida Abd Rahim |
| Date Deposited: | 19 Jul 2024 04:13 |
| Last Modified: | 19 Jul 2024 04:13 |
| URI: | http://eprints.um.edu.my/id/eprint/46085 |
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