, foreign portfolio investment and debt flows (bank loans and bonds). We focus on information frictions such as adverse … flows: 1. home court information advantage; 2. panic-based capital-flow reversals; 3. information-liquidity trade-off in the …

In an integrated world capital market with perfect information, all forms of capital flows are indistinguishable …. Information frictions and incomplete risk sharing are important elements that needed to differentiate between equity and debt … composition of capital flows.With information asymmetry between foreign and domestic investors, a country which finances its …