Foreign portfolio investment is a major means by which emerging stock markets accumulate capital. However, the high mobility of foreign funds is a concern for local investors and policymakers in emerging countries because it may induce high stock price volatility. In this study, we utilized a...

Due to the small market size and the low trading volume, emerging markets are, in general, shallow and easily affected by external factors such as the capital flows from foreign portfolio investment and the stock market fluctuations of their major trading partners. This study attempts to...