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Do Foreigners Invest Less in Poorly Governed Firms?

Leuz, Christian - 2010

As domestic sources of outside finance are limited in many countries around the world, it is important to understand the factors that influence whether foreign outside investors provide capital to a country's firms. This study examines whether and why investor concern about corporate governance...

Persistent link: https://www.econbiz.de/10012761576

U.S. Investment in Global Bonds : As the Fed Pushes, Some Emes Pull

Burger, John D. - 2014

We analyze reallocations within the international bond portfolios of US investors. The most striking empirical observation is a steady increase in US investors' allocations toward emerging market local currency bonds, unabated by the global financial crisis and accelerating in the post-crisis...

Persistent link: https://www.econbiz.de/10013045646

Benchmarking Portfolio Flows

Burger, John D. - 2018

To gauge the amount of portfolio inflows a country can expect to receive, we create a benchmark, a longer-term baseline path around which actual flows fluctuate. The relationship between our benchmark and actual flows is quite strong for emerging market economies (EMEs). For our sample of 28...

Persistent link: https://www.econbiz.de/10012915656

Role Reversal in Global Finance

Prasad, Eswar S. - 2011

I document that emerging markets have cast off their "original sin"--their external liabilities are no longer dominated by foreign-currency debt and have instead shifted sharply towards direct investment and portfolio equity. Their external assets are increasingly concentrated in foreign...

Persistent link: https://www.econbiz.de/10013119611

Financial Globalization, Financial Crises, and the External Portfolio Structure of Emerging Markets

Mendoza, Enrique G. - 2013

We study the short- and long-run effects of financial integration in emerging economies using a two-sector model with a collateral constraint on external debt and trading costs incurred by foreign investors. The probability of a financial crisis displays overshooting: It rises sharply initially...

Persistent link: https://www.econbiz.de/10013081498

Capital Flows and the Behavior of Emerging Market Equity Returns

Bekaert, Geert - 2010

Foreign portfolio flows may reflect deep changes in the functioning of an emerging market economy and its capital markets. Using a database of monthly net U.S. equity flows, we investigate the relation of these flows to the behavior of equity returns, the structural characteristics of the...

Persistent link: https://www.econbiz.de/10012763588

Foreign Speculators and Emerging Equity Markets

Bekaert, Geert - 2008

A number of countries have delayed the opening of their capital markets to internationalquot; investment because of reservations about the impact of foreign speculators on both expectedquot; returns and market volatility. We propose a cross-sectional time-series model that attempts toquot;...

Persistent link: https://www.econbiz.de/10012774923

Capital Flows to Emerging Markets : Liberalization, Overshooting, and Volatility

Bacchetta, Philippe - 2008

The paper analyzes the impact of financial liberalizations and reforms in emerging markets on the dynamics of capital flows to these markets, using a simple model of international investors' behavior. We first show that the gradual nature of liberalizations, combined with the cost of absorbing...

Persistent link: https://www.econbiz.de/10012774900

The Forward Market in Emerging Currencies : Less Biased than in Major Currencies

Frankel, Jeffrey A. - 2010

smaller bias than for advanced country currencies. The coefficient is on average positive, i.e., the forward discount at least … risk premium may not be the explanation for traditional findings of bias. The reasoning is that emerging markets are … probably riskier; yet we find that the bias in their forward rates is smaller. Emerging market currencies probably have more …

Persistent link: https://www.econbiz.de/10012760670

Decomposing the U.S. External Returns Differential

Curcuru, Stephanie E. - 2010

We decompose the returns differential between U.S. portfolio claims and liabilities into the composition, return, and timing effects. Our most striking and robust finding is that foreigners exhibit poor timing when reallocating between bonds and equities within their U.S. portfolios. The poor...

Persistent link: https://www.econbiz.de/10013152498