Transparency and International Investor Behavior
By R. Gaston, Shang-jin Wei, Philippe Bacchetta, Andrew Berg, Patrick Bolton, T. Cordella, Douglas Gale, Philippe Martin, Paolo Mauro, Alessandro Prati and 8 more. Social Science Research Network, 2002
184 citations recorded by the source corpus.
Does country transparency affect international portfolio investment? We examine this and related questions using some new measures of transparency and a unique micro dataset on international portfolio holdings. We distinguish between government and corporate transparency. There is clear evidence that international funds invest systematically less in less transparent countries. On the other hand, herding among funds tends to be more prevalent in less transparent countries. There is also some evidence that during crises, funds flee non-transparent countries by a greater amount.
Subfields: Accounting, Finance
View Paper: https://www.semanticscholar.org/paper/6ccfb99e6f3e97afaad9b5eeac89852ef4bd6cc4
Citations in the corpus
- Effects of Financial Globalization on Developing Countries: Some Empirical Evidence (2003, unknown): “More portfolio investment from international mutual funds tends to go to countries with a higher level of transparency (Gelos and Wei (2002), and Figure 11).”
- What Lies Beneath the Euro's Effect on Financial Integration? Currency Risk, Legal Harmonization, or Trade? (2010, unknown): “Our estimates indicate that cross-border banking activities increased signi cantly among European countries that quickly adopted the nancial services Directives of the FSAP.”
- Portfolio preferences of foreign institutional investors (2003, unknown): “6 For example, Gelos and Wei (2002) and Borensztein and Gelos (2001) study the behavior of international portfolio flows over time.”
- Institutions and Information Environment of Chinese Listed Firms (2012, unknown): “arguments, Gelos and Wei (2004) show (using cross-country data) that stronger disclosure practices are associated with greater levels of foreign investment, while Gul, Kim and Qiu (2009) find that stock price synchronicity in China is inversely related to the level of foreign holdings.”