Capital Account Liberalization: Allocative Efficiency or Animal Spirits?
In the year that capital-poor countries open their stock markets to foreign investors, the growth rate of their typical firm's capital stock exceeds its pre-liberalization mean by 4.1 percentage points. In each of the next three years the average growth rate of the capital stock for the 369 firms in the sample exceeds its pre-liberalization mean by 6.1 percentage points. However, there is no evidence that differences in the liberalization-induced changes in the cost of capital or investment opportunities drive the cross-sectional variation in the post-liberalization investment increases.
Year of publication: |
2002-04
|
---|---|
Authors: | Chari, Anusha ; Henry, Peter B. |
Institutions: | Graduate School of Business, Stanford University |
Saved in:
freely available
Saved in favorites
Similar items by person
-
Firm-Specific Information and the Efficiency of Investment
Chari, Anusha, (2006)
-
Stock Market Liberalizations and the Repricing of Systematic Risk
Henry, Peter B., (2001)
-
Firm-Specific Information and the Efficiency of Investment
Chari, Anusha, (2007)
- More ...