Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
This paper examines the impact of financial liberalization on emerging capital market in the context of China. We control for time-invariant firm fixed effects and employ lagged firm size and ownership structure as instrumental variables for the shareholdings of institutional investors. The results indicate that foreign institutional investors reduce volatility and act as market stabilizers. In contrast, domestic institutional investors exacerbate stock market fluctuation.