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Liquidity, Institutional Quality and the Composition of International Equity Flows
Goldstein, Itay - 2010
FDI investors control the management of the firms, whereas FPI investors delegate decisions to managers. Therefore, direct investors are more informed than portfolio investors about the prospects of projects. This information enables them to manage their projects more efficiently. However, if...
Persistent link: https://www.econbiz.de/10012462924
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Liquidity, Institutional Quality and the Composition of International Equity Outflows
Goldstein, Itay - 2008
We examine the choice between Foreign Direct Investment and Foreign Portfolio Investment at the level of the source country. Based on a theoretical model, we predict that (1) source countries with higher probability of aggregate liquidity crises export relatively more FPI than FDI, and (2) this...
Persistent link: https://www.econbiz.de/10012464879
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Equity Prices and Equity Flows : Testing Theory of the Information-Efficiency Tradeoff
Razin, Assaf - 2010
The paper tests three hypotheses concerning foreign equity investment in the presence of liquidity risk. First, the FDI …-to-FPI price differential is negatively related to liquidity risk (the "Price Discount Hypothesis"). The idea is that market …
Persistent link: https://www.econbiz.de/10012462005
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Do Some Enterprise Zones Create Jobs?
Kolko, Jed - 2009
We study how the employment effects of enterprise zones vary with their location, implementation, and administration, based on evidence from California. We use new establishment-level data and geographic mapping methods, coupled with a survey of enterprise zone administrators. Overall, the...
Persistent link: https://www.econbiz.de/10012463443
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When Is Quality of Financial System a Source of Comparative Advantage?
Ju, Jiandong - 2008
Does finance follow the real economy, or the other way around? This paper unites the two competing schools of thought in a general equilibrium framework. Our key result is that there are threshold effects defined by a set of deep institutional parameters (cost of financial intermediation,...
Persistent link: https://www.econbiz.de/10012464662
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Domestic Institutions and the Bypass Effect of Financial Globalization
Ju, Jiandong - 2007
the world than many developing countries. A noteworthy feature of this theory is that financial and property rights …
Persistent link: https://www.econbiz.de/10012465505
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Intrinsic Openness and Endogenous Institutional Quality
Jiao, Yang - 2017
Quality of public institutions has been recognized as a crucial determinant of macroeconomic outcomes. We propose that a country's intrinsic level of openness (due to population size, geography, or exogenous trade opportunities) affects its incentives in investing in better institutions. We...
Persistent link: https://www.econbiz.de/10012453661
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International Capital Movements Under Uncertainty
Grossman, Gene M. - 1983
and international trade in goods and securities.In our model, the world allocation of capital is governed, to some extent …, by the asset preferences of risk averse consumer-investors. In a one-good variant in the spirit of the MacDougall model … world of certaint and may hinge on the identity of the factor which is used intensively in the industry with random …
Persistent link: https://www.econbiz.de/10012478028
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Risk, Uncertainty and Monetary Policy
Bekaert, Geert - 2010
stance. When decomposing the VIX into two components, a proxy for risk aversion and expected stock market volatility … ("uncertainty"), we find that a lax monetary policy decreases both risk aversion and uncertainty, with the former effect being …
Persistent link: https://www.econbiz.de/10012462259
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How Does Corporate Governance Risk at Home Affect Investment Choices Abroad?
Kim, Woochan - 2008
Disparity between control and ownership rights gives rise to the risk of tunneling by the controlling shareholder, and …
Persistent link: https://www.econbiz.de/10012464925