Risk Sharing and Asset Prices : Evidence From a Natural Experiment By

@inproceedings{Chari2002RiskSA,
  title={Risk Sharing and Asset Prices : Evidence From a Natural Experiment By},
  author={Anusha Chari and P. Henry},
  year={2002}
}
When countries liberalize their stock markets, firms that become eligible for purchase by foreigners (investible), experience an average stock price revaluation of 15.1 percent. Since the covariance of the mean investible firm’s stock return with the local market is roughly 200 times larger than its covariance with the world market, liberalization reduces… CONTINUE READING