Portfolio Preferences of Foreign Institutional Ivestors

The authors examine the relationship between foreign investment and the attributes of emerging market countries and firms in which investment is made. Their findings indicate that countries with higher levels of economic development and floating ex...

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Main Authors:	Aggarwal, Reena, Klapper, Leora, Wysocki, Peter D.
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	ACCOUNTING ACCOUNTING POLICIES ACCOUNTING PRACTICES ACCOUNTING STANDARDS ASSET TURNOVER ASSETS AUDITORS BALANCE SHEET BENCHMARK BONDS CAPITAL MARKETS CAPITALIZATION CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATION CORPORATE GOVERNANCE COST OF CAPITAL DEBT DISCLOSURE DISCLOSURE RULES DIVIDEND YIELD DIVIDENDS ECONOMIC GROWTH EMERGING MARKETS EMPIRICAL ANALYSIS EQUITY CAPITAL EQUITY MARKETS EXCHANGE RATE EXCHANGE RATES EXPROPRIATION FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL REPORTING FINANCIAL SYSTEMS FOREIGN CAPITAL FOREIGN FIRMS FOREIGN INVESTMENT FOREIGN INVESTORS FOREIGN OWNERSHIP GDP GDP PER CAPITA GLOBAL MARKETS INFORMATION ASYMMETRIES INTERNATIONAL ACCOUNTING STANDARDS LAWS LEGAL FRAMEWORK LIQUIDITY MACROECONOMIC POLICIES MARKET FACTORS MUTUAL FUND MUTUAL FUNDS NASDAQ NET ASSETS NYSE OPTIMIZATION OTC PENSIONS PORTFOLIO PORTFOLIOS PROPERTY RIGHTS REGRESSION ANALYSIS REGRESSION MODELS RETURN ON EQUITY ROE SECURITIES STATEMENTS STOCK MARKETS STOCK PRICES SUBSIDIARIES TRANSACTION COSTS TRANSPARENCY WEALTH PORTFOLIO INVESTMENT PORTFOLIO COMPOSITION PORTFOLIO EVALUATION INSTITUTIONAL INVESTMENTS INSTITUTIONAL INVESTORS EMERGING ECONOMIES ECONOMIC DEVELOPMENT FLOATING EXCHANGE RATES SHAREHOLDING STRUCTURE MUTUAL FUND RATING EQUITY INVESTMENTS COUNTRY CLASSIFICATIONS PORTFOLIO INVESTMENT WEALTH
Online Access:	http://documents.worldbank.org/curated/en/2003/07/2493514/portfolio-preferences-foreign-institutional-investors http://hdl.handle.net/10986/18157

id	okr-10986-18157
recordtype	oai_dc
spelling	okr-10986-181572021-04-23T14:03:41Z Portfolio Preferences of Foreign Institutional Ivestors Aggarwal, Reena Klapper, Leora Wysocki, Peter D. ACCOUNTING ACCOUNTING POLICIES ACCOUNTING PRACTICES ACCOUNTING STANDARDS ASSET TURNOVER ASSETS AUDITORS BALANCE SHEET BENCHMARK BONDS CAPITAL MARKETS CAPITALIZATION CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATION CORPORATE GOVERNANCE COST OF CAPITAL DEBT DISCLOSURE DISCLOSURE RULES DIVIDEND YIELD DIVIDENDS ECONOMIC GROWTH EMERGING MARKETS EMPIRICAL ANALYSIS EQUITY CAPITAL EQUITY MARKETS EXCHANGE RATE EXCHANGE RATES EXPROPRIATION FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL REPORTING FINANCIAL SYSTEMS FOREIGN CAPITAL FOREIGN FIRMS FOREIGN INVESTMENT FOREIGN INVESTORS FOREIGN OWNERSHIP GDP GDP PER CAPITA GLOBAL MARKETS INFORMATION ASYMMETRIES INTERNATIONAL ACCOUNTING STANDARDS LAWS LEGAL FRAMEWORK LIQUIDITY MACROECONOMIC POLICIES MARKET FACTORS MUTUAL FUND MUTUAL FUNDS NASDAQ NET ASSETS NYSE OPTIMIZATION OTC PENSIONS PORTFOLIO PORTFOLIOS PROPERTY RIGHTS REGRESSION ANALYSIS REGRESSION MODELS RETURN ON EQUITY ROE SECURITIES STATEMENTS STOCK MARKETS STOCK PRICES SUBSIDIARIES TRANSACTION COSTS TRANSPARENCY WEALTH PORTFOLIO INVESTMENT PORTFOLIO COMPOSITION PORTFOLIO EVALUATION INSTITUTIONAL INVESTMENTS INSTITUTIONAL INVESTORS EMERGING ECONOMIES ECONOMIC DEVELOPMENT FLOATING EXCHANGE RATES FOREIGN CAPITAL SHAREHOLDING STRUCTURE LEGAL FRAMEWORK CORPORATE GOVERNANCE MUTUAL FUND RATING EQUITY INVESTMENTS COUNTRY CLASSIFICATIONS PORTFOLIO INVESTMENT WEALTH The authors examine the relationship between foreign investment and the attributes of emerging market countries and firms in which investment is made. Their findings indicate that countries with higher levels of economic development and floating exchange rate regimes tend to have greater ability to obtain foreign capital. After controlling for the country's level of economic development, they find that firms in countries with stronger shareholder rights and legal framework attract more foreign capital. The authors also find that foreign institutions allocate more of their assets to firms with better corporate governance after controlling for other country and firm attributes. The main firm-level measures of corporate governance are derived from accounting quality variables. Their results imply that steps can be taken both at the country and the firm level to create an environment conducive to foreign portfolio investment. The analysis is based on a unique dataset consisting of equity positions of U.S. mutual funds in emerging markets. 2014-05-05T18:51:32Z 2014-05-05T18:51:32Z 2003-07 http://documents.worldbank.org/curated/en/2003/07/2493514/portfolio-preferences-foreign-institutional-investors http://hdl.handle.net/10986/18157 English en_US Policy Research Working Paper;No. 3101 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	ACCOUNTING ACCOUNTING POLICIES ACCOUNTING PRACTICES ACCOUNTING STANDARDS ASSET TURNOVER ASSETS AUDITORS BALANCE SHEET BENCHMARK BONDS CAPITAL MARKETS CAPITALIZATION CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATION CORPORATE GOVERNANCE COST OF CAPITAL DEBT DISCLOSURE DISCLOSURE RULES DIVIDEND YIELD DIVIDENDS ECONOMIC GROWTH EMERGING MARKETS EMPIRICAL ANALYSIS EQUITY CAPITAL EQUITY MARKETS EXCHANGE RATE EXCHANGE RATES EXPROPRIATION FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL REPORTING FINANCIAL SYSTEMS FOREIGN CAPITAL FOREIGN FIRMS FOREIGN INVESTMENT FOREIGN INVESTORS FOREIGN OWNERSHIP GDP GDP PER CAPITA GLOBAL MARKETS INFORMATION ASYMMETRIES INTERNATIONAL ACCOUNTING STANDARDS LAWS LEGAL FRAMEWORK LIQUIDITY MACROECONOMIC POLICIES MARKET FACTORS MUTUAL FUND MUTUAL FUNDS NASDAQ NET ASSETS NYSE OPTIMIZATION OTC PENSIONS PORTFOLIO PORTFOLIOS PROPERTY RIGHTS REGRESSION ANALYSIS REGRESSION MODELS RETURN ON EQUITY ROE SECURITIES STATEMENTS STOCK MARKETS STOCK PRICES SUBSIDIARIES TRANSACTION COSTS TRANSPARENCY WEALTH PORTFOLIO INVESTMENT PORTFOLIO COMPOSITION PORTFOLIO EVALUATION INSTITUTIONAL INVESTMENTS INSTITUTIONAL INVESTORS EMERGING ECONOMIES ECONOMIC DEVELOPMENT FLOATING EXCHANGE RATES FOREIGN CAPITAL SHAREHOLDING STRUCTURE LEGAL FRAMEWORK CORPORATE GOVERNANCE MUTUAL FUND RATING EQUITY INVESTMENTS COUNTRY CLASSIFICATIONS PORTFOLIO INVESTMENT WEALTH
spellingShingle	ACCOUNTING ACCOUNTING POLICIES ACCOUNTING PRACTICES ACCOUNTING STANDARDS ASSET TURNOVER ASSETS AUDITORS BALANCE SHEET BENCHMARK BONDS CAPITAL MARKETS CAPITALIZATION CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATION CORPORATE GOVERNANCE COST OF CAPITAL DEBT DISCLOSURE DISCLOSURE RULES DIVIDEND YIELD DIVIDENDS ECONOMIC GROWTH EMERGING MARKETS EMPIRICAL ANALYSIS EQUITY CAPITAL EQUITY MARKETS EXCHANGE RATE EXCHANGE RATES EXPROPRIATION FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL REPORTING FINANCIAL SYSTEMS FOREIGN CAPITAL FOREIGN FIRMS FOREIGN INVESTMENT FOREIGN INVESTORS FOREIGN OWNERSHIP GDP GDP PER CAPITA GLOBAL MARKETS INFORMATION ASYMMETRIES INTERNATIONAL ACCOUNTING STANDARDS LAWS LEGAL FRAMEWORK LIQUIDITY MACROECONOMIC POLICIES MARKET FACTORS MUTUAL FUND MUTUAL FUNDS NASDAQ NET ASSETS NYSE OPTIMIZATION OTC PENSIONS PORTFOLIO PORTFOLIOS PROPERTY RIGHTS REGRESSION ANALYSIS REGRESSION MODELS RETURN ON EQUITY ROE SECURITIES STATEMENTS STOCK MARKETS STOCK PRICES SUBSIDIARIES TRANSACTION COSTS TRANSPARENCY WEALTH PORTFOLIO INVESTMENT PORTFOLIO COMPOSITION PORTFOLIO EVALUATION INSTITUTIONAL INVESTMENTS INSTITUTIONAL INVESTORS EMERGING ECONOMIES ECONOMIC DEVELOPMENT FLOATING EXCHANGE RATES FOREIGN CAPITAL SHAREHOLDING STRUCTURE LEGAL FRAMEWORK CORPORATE GOVERNANCE MUTUAL FUND RATING EQUITY INVESTMENTS COUNTRY CLASSIFICATIONS PORTFOLIO INVESTMENT WEALTH Aggarwal, Reena Klapper, Leora Wysocki, Peter D. Portfolio Preferences of Foreign Institutional Ivestors
relation	Policy Research Working Paper;No. 3101
description	The authors examine the relationship between foreign investment and the attributes of emerging market countries and firms in which investment is made. Their findings indicate that countries with higher levels of economic development and floating exchange rate regimes tend to have greater ability to obtain foreign capital. After controlling for the country's level of economic development, they find that firms in countries with stronger shareholder rights and legal framework attract more foreign capital. The authors also find that foreign institutions allocate more of their assets to firms with better corporate governance after controlling for other country and firm attributes. The main firm-level measures of corporate governance are derived from accounting quality variables. Their results imply that steps can be taken both at the country and the firm level to create an environment conducive to foreign portfolio investment. The analysis is based on a unique dataset consisting of equity positions of U.S. mutual funds in emerging markets.
format	Publications & Research :: Policy Research Working Paper
author	Aggarwal, Reena Klapper, Leora Wysocki, Peter D.
author_facet	Aggarwal, Reena Klapper, Leora Wysocki, Peter D.
author_sort	Aggarwal, Reena
title	Portfolio Preferences of Foreign Institutional Ivestors
title_short	Portfolio Preferences of Foreign Institutional Ivestors
title_full	Portfolio Preferences of Foreign Institutional Ivestors
title_fullStr	Portfolio Preferences of Foreign Institutional Ivestors
title_full_unstemmed	Portfolio Preferences of Foreign Institutional Ivestors
title_sort	portfolio preferences of foreign institutional ivestors
publisher	World Bank, Washington, DC
publishDate	2014
url	http://documents.worldbank.org/curated/en/2003/07/2493514/portfolio-preferences-foreign-institutional-investors http://hdl.handle.net/10986/18157
_version_	1764439006938923008

Portfolio Preferences of Foreign Institutional Ivestors

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