아세안

This paper examines the trading behavior of foreign investors in Thailand and its impact on the country’s stock market and currency value during January 1, 1975 to August 31, 2009. We also investigate if the trading strategy of foreigners has changed during the 1997 financial crisis, 2004 Tsunami crisis, and 2006 and 2008 political crisis. For the entire sample period, foreign investors were the net purchaser of Thai equity and implemented positive feed-back investment trading strategy, while domestic investors were the net sellers with a contrarian investment strategy. The trading behaviors of foreign investors do not change during the financial and tsunami turmoil and 2006 political upheaval in Thailand. These crises do not scare foreign investors out of Thailand. It was the trading activities of domestic individual investors that destabilized the stock market of Thailand during the 1997 Asian financial crisis.