Luxvara Piamworrakaroon


This study attempts to explain the foreign premium of foreign stock relative to domestic stock by three hypotheses which are demand differential, information availability, and diversification benefit. The panel regression is employed. The results of the study yields that only demand differential hypothesis is significant. The downward trend of foreign premium during 2002 to 2014 can be explained by looser foreign ownership limit and the existence of NVDR as substitute of domestic stock.


Market segmentation; Stock price; Thai stock market

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