IDEAS home Printed from https://ideas.repec.org/a/bla/finrev/v45y2010i4p1025-1051.html
   My bibliography  Save this article

Empirical Evidence of the Existence of Investable Premiums in Emerging Market Investable Stocks

Author

Listed:
  • Eric C. Girard

Abstract

This paper shows that portfolios of more investable securities bear a premium when compared to portfolios of less investable stocks, reflecting compensation for local risk factors. The investable premium is overwhelmingly priced across 3,782 companies traded in 29 emerging markets from 1988 to 2006. The investable premium impacts stock returns at least as much as other fundamental premiums such as size, value, momentum, and loads on political, economic, and financial risk factors. The impact of the investable premium on emerging stocks returns has increased in strength, implying that foreign ownership has greater influence on local markets in recent years.

Suggested Citation

  • Eric C. Girard, 2010. "Empirical Evidence of the Existence of Investable Premiums in Emerging Market Investable Stocks," The Financial Review, Eastern Finance Association, vol. 45(4), pages 1025-1051, November.
    • Handle: RePEc:bla:finrev:v:45:y:2010:i:4:p:1025-1051
    DOI: 10.1111/j.1540-6288.2010.00284.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1540-6288.2010.00284.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1540-6288.2010.00284.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:finrev:v:45:y:2010:i:4:p:1025-1051. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/efaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.