| Author: | Hietala, P. T. |
| Title: | Asset pricing in partially segmented markets : evidence from the finnish market. |
| Journal: | Journal of Finance
1989 : JUL, VOL. 44:3, p. 697-718 |
| Index terms: | ASSETS PRICING SHARE PRICES FINLAND TAXATION |
| Language: | eng |
| Abstract: | Asset pricing in a partially segmented market is analyzed where citizens of a small country are allowed to hold only their domestic securities, whereas the rest of the investors ("foreigners") are essentially allowed to hold all securities. In this market setting it may occur that the citizens of the country are willing to pay less for their domestic securities than are the foreign investors. Equilibrium required rates of return for different investors in this market setting are derived, and the model is tested with data from the Finnish stock market. Empirical results are consistent with the hypotheses derived from the model. |
SCIMA