We ask whether foreign equity ownership increases or decreases the stability of information signals that are absorbed into prices, hence affecting price volatility and the quality of the domestic stock market in an emerging economy. We address both the effect of ownership restrictions...

This paper uses a term structure of Mexican sovereign debt to create measures of country and currency risk premia. We use these measures to test hypothesis about investors' expectations regarding these risks and their relationship to volatility in securities markets. In the period 1993-94, the...