15

Lim and Kim [18]

Investigate the link between trade openness and informational efficiency of stock market

Using monthly data from 1992Q1-2006Q12 in a sample of 23 developing countries and employing Fixed Effect Regression

De-factor trade openness is associated with high degree of informational efficiency in emerging markets but the positive effect does not hold when the De-jure measure of trade openness is used. There is no evidence for significant link between trade openness and stock market efficiency.

16

Bley and Saad (2011) [19]

Assesses the impact of equity market liberalization and capital account openness on individual firm’s stock return volatility

Using annual data from 1998-2009 Gulf Cooperation Council markets for 602 stocks and utilizing pooled regression

Capital account openness significantly reduces volatility especially for stocks with low foreign ownership limits. The effect of capital account restrictions is stronger on capital inflow than outflow and on residents than non-residents