Portfolio Preferences of Foreign Institutional Ivestors

Aggarwal, Reena ; Klapper, Leora ; Wysocki, Peter D.

World Bank, Washington, DC

关键词: ACCOUNTING;    ACCOUNTING POLICIES;    ACCOUNTING PRACTICES;    ACCOUNTING STANDARDS;    ASSET TURNOVER;   

DOI  :  10.1596/1813-9450-3101
RP-ID  :  WPS3101

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

The authors examine the relationshipbetween foreign investment and the attributes of emergingmarket countries and firms in which investment is made.Their findings indicate that countries with higher levels ofeconomic development and floating exchange rate regimes tendto have greater ability to obtain foreign capital. Aftercontrolling for the country's level of economicdevelopment, they find that firms in countries with strongershareholder rights and legal framework attract more foreigncapital. The authors also find that foreign institutionsallocate more of their assets to firms with better corporategovernance after controlling for other country and firmattributes. The main firm-level measures of corporategovernance are derived from accounting quality variables.Their results imply that steps can be taken both at thecountry and the firm level to create an environmentconducive to foreign portfolio investment. The analysis isbased on a unique dataset consisting of equity positions ofU.S. mutual funds in emerging markets.