Download or read book Have Institutional Investors Destabilized Emerging Markets written by Mr.Brian J. Aitken and published by International Monetary Fund. This book was released on 1996-04-01 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the past few years there has been a large increase in portfolio capital flows into emerging markets, mostly fueled by mutual funds and other institutional investors. Based on a simple variance ratio test, this paper finds that emerging stock markets as a group experienced a sharp increase in autocorrelation in total returns at a time when institutional investors began to significantly expand their holdings in these markets. These results are consistent with the view that institutional investor sentiment toward emerging markets as an asset class can at times play a critical role in determining asset prices, with shifts in sentiment resulting in periods of bubble-like booms and busts and asset price overshooting.
Download or read book Have Institutional Investors Destabilized Emerging Markets written by Brian Aitken and published by . This book was released on 2006 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the past few years there has been a large increase in portfolio capital flows into emerging markets, mostly fueled by mutual funds and other institutional investors. Based on a simple variance ratio test, this paper finds that emerging stock markets as a group experienced a sharp increase in autocorrelation in total returns at a time when institutional investors began to significantly expand their holdings in these markets. These results are consistent with the view that institutional investor sentiment toward emerging markets as an asset class can at times play a critical role in determining asset prices, with shifts in sentiment resulting in periods of bubble-like booms and busts and asset price overshooting.
Download or read book Are Institutional Investors an Important Source of Portfolio Investment in Emerging Markets written by Punam Chuhan and published by World Bank Publications. This book was released on 1994 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: Major institutional investors in five industrial countries invest cautiously, and very little, in emerging market securities. But only in Germany are regulations on foreign investment a significant constraint.
Download or read book Institutional Investors and Capital Flows to Emerging Markets written by Bruno Bonizzi and published by . This book was released on 2016 with total page 594 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Freedom and Finance written by Mary Ann Haley and published by . This book was released on 1999 with total page 528 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation explores how portfolio capital affects democratization in developing countries by examining institutional investor practices. It addresses the dilemma presented by the international finance community's meritocratic system that simultaneously rewards austerity programs and stability. The shift from public finance to private capitalization is found to facilitate an anti-democratic strain within the recent wave of democratization. Chapter 1 describes the shift from official development assistance to private finance, and the growing importance of portfolio capital in emerging markets. A brief history of investment and loan instruments is presented. Chapter 2 investigates emerging capital markets for investor coordination and asset concentration. Findings indicate emerging market funds are influenced by fund location and have high levels of asset concentration within a few funds. Preferences of institutional investors are uncovered in Chapter 3 through an investor survey of the emerging market investment criteria. Stability is consistently valued over democratic institutions, even if repressive measures are sometimes needed. Chapter 4 focuses on the systemic factors shaping international financial constraints experienced by developing countries. Five levels of coordination are presented (ideological, intra-firm, inter-firm, market-level, institutional) through which common goals and outcomes emerge, producing varying degrees of cohesion over policy direction in developing countries. Chapter 5 examines investor efforts to exercise power in developing countries by drawing parallels between domestic and international investor activism. The increase of emerging market activism, combined with the reinforcement of corporate governance regulations, augments the potential power of large investment firms in developing countries. The last chapter tests the possibility that there is a relationship between the apparent investor preference for stability over democracy and the levels of political rights and civil liberties in emerging market countries. By constructing counterfactuals and correcting selection bias, I find that the 1980s and 1990s finance capital inflows controlled by institutional investors have not, in general, helped to increase democracy. These results indicate that those countries with higher rates of market capitalization as a percent of GDP are more likely to lose freedoms over time. Country experiences with investor demands complement this quantitative analysis.
Download or read book International Institutional Investors and Asset Prices in Emerging Markets written by Sith Chaisurote and published by . This book was released on 2009 with total page 188 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Cracking the Emerging Markets Enigma written by G. Andrew Karolyi and published by Oxford University Press, USA. This book was released on 2015 with total page 313 pages. Available in PDF, EPUB and Kindle. Book excerpt: Cracking the Emerging Markets Enigma outlines a rigorous, comprehensive, and practical framework for evaluating the opportunities and, more importantly, the risks of investing in emerging markets. Built on a foundation of sound research on foreign direct and portfolio capital flows, Andrew Karolyi's proposed system of evaluation incorporates multiple dimensions of the potential risks faced by prospective investors in an empirically coherent framework.
Download or read book Encouraging the Longer Term written by Stephany Griffith-Jones and published by . This book was released on 1999 with total page 68 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Emerging Market Portfolio Flows written by Mr.Serkan Arslanalp and published by International Monetary Fund. This book was released on 2015-12-17 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt: Portfolio flows to emerging markets (EMs) tend to be correlated. A possible explanation is the role global benchmarks play in allocating capital internationally, the so-called “benchmark effect.” This paper finds that benchmark-driven investors indeed play a large role in a key segment of the market—the EM local currency government bond market—, accounting for more than one third of total foreign holdings as of end-2014. We find that the prominence of these investors declined somewhat after the May 2013 taper tantrum, but remain high. This distinction is important in understanding the drivers of EM capital flows and their sensitivity to different types of shocks. In particular, a high share of benchmark-driven investors may result in capital flows that are more sensitive to global shocks and less sensitive to country factors.
Download or read book The Politics of Equity Finance in Emerging Markets written by Kathryn C. Lavelle and published by Oxford University Press. This book was released on 2004-10-14 with total page 294 pages. Available in PDF, EPUB and Kindle. Book excerpt: Emerging market stock issuance relative to GDP rose in the late twentieth century to levels that roughly matched that of advanced, industrial markets. Nonetheless, the connection between owning shares of emerging market stock and the ability to influence the management of these firms remains fundamentally different from the analogous institutional connection that has evolved in industrial markets. The reasons for the differences in emerging markets are both historical and political in nature. That is, local equity markets have had the objective of providing for some degree of local ownership and control of large economic entities since the late nineteenth century. However, local markets have operated under different global political structures since that time, ranging from imperialism, to world wars, to sovereign developmental states, to neo-liberal states. Shares issued under these different structures have been reconfigured over time, resulting in a lack of convergence along either the Anglo-American or Continental models of corporate governance. The author uses a political science paradigm to explain the growth of emerging equity markets. She departs from conventional economic explanations and examines politics at the micro-level of large issues of emerging market stock. The second half of the book presents case studies dealing with emerging market countries in Latin America, Asia, Russia and Eastern Europe, Africa and the Middle East. The case studies connect the regional, state, and firm levels to detail the multiple ownership and control arrangements, and to dispel the notion that mere quantitative growth of these markets will lead to a convergence in financial institutional structures along the lines of the industrial core of the world economy.
Download or read book The Persistence of Emerging Market Equity Flows written by Jessica D. Tjornhom and published by . This book was released on 2002 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt: The portfolio flows of institutional investors have been found to be highly persistent across countries and individual investment funds. This paper investigates the source of this persistence in emerging market equities. We employ the decomposition methodology of Froot and Tjornhom (2002), which decomposes the persistence of flows into four components: (i) own-country, own-fund persistence (which might arise from informed trading within each country by individual funds); (ii) own-country, cross-fund persistence (which might arise from asynchronicities across funds); (iii) cross-country, own-fund persistence (which might arise from asynchonicities within a fund) and (iv) cross-country, cross-fund persistence (which might arise from other reaction lags such as contagion across both countries and funds). We find evidence that all four components are positive in emerging markets. Our results differ from those in developed countries, in that we attribute approximately 10%-20% of total persistence to cross-country effects (iii) and (iv). These findings are consistent with stories of contagion, which suggest that demand shifts move predictably from one country to another. They cannot easily be explained by informed trading alone or by wealth effects.
Download or read book Institutional Investors and Asset Pricing in Emerging Markets written by Elaine Buckberg and published by . This book was released on 1996 with total page 18 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Emerging Markets in an Upside Down World written by Jerome Paul Booth and published by . This book was released on 2014 with total page 265 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Are Institutional Investors an Important Source of Portafolio Investment in Emerging Markets written by Punam Chuhan and published by . This book was released on 1994 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Foreign Equity Flows and the Asian Financial Crisis written by Michael Barth and published by . This book was released on 1999 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper provides a new perspective on the roles of foreign equity flows in the Asian financial crises of the past two years. It desegregates foreign equity flows to Asian emerging markets over the past several years by type of equity investment and by type of investor, showing that foreign equity investments do not all behave alike. Specifically, the paper distinguishes between three types of foreign investors--mutual funds, pension funds, and hedge funds--and three means by which foreign institutions invest in local stocks--local market investments, international placements and private equity. The paper conclude that international placements and private equity investments were stable sources of finance during the Asian crises. With regard to local equity investments the paper provides a variety of evidence pointing to the conclusion that foreign investors may not have destabilized Asian stock prices: foreign investors in local markets are shown to have investment horizons that are longer than those of domestic investors, to be motivated economic fundamentals, and to have in general suffered significant losses during the crises. The paper however also presents evidence of high influence on local stock markets by foreign investors. Foreign investors are shown to have controlled the majority of free float of most Asian stock markets. Analytical work also shows that foreign investors are market leaders. Hedge funds are found to have gained significantly during the Asian financial crisis. These evidence argue strongly for the development of a domestic capital markets and domestic institutional investor base.
Download or read book International Capital Flows written by Martin Feldstein and published by University of Chicago Press. This book was released on 2007-12-01 with total page 500 pages. Available in PDF, EPUB and Kindle. Book excerpt: Recent changes in technology, along with the opening up of many regions previously closed to investment, have led to explosive growth in the international movement of capital. Flows from foreign direct investment and debt and equity financing can bring countries substantial gains by augmenting local savings and by improving technology and incentives. Investing companies acquire market access, lower cost inputs, and opportunities for profitable introductions of production methods in the countries where they invest. But, as was underscored recently by the economic and financial crises in several Asian countries, capital flows can also bring risks. Although there is no simple explanation of the currency crisis in Asia, it is clear that fixed exchange rates and chronic deficits increased the likelihood of a breakdown. Similarly, during the 1970s, the United States and other industrial countries loaned OPEC surpluses to borrowers in Latin America. But when the U.S. Federal Reserve raised interest rates to control soaring inflation, the result was a widespread debt moratorium in Latin America as many countries throughout the region struggled to pay the high interest on their foreign loans. International Capital Flows contains recent work by eminent scholars and practitioners on the experience of capital flows to Latin America, Asia, and eastern Europe. These papers discuss the role of banks, equity markets, and foreign direct investment in international capital flows, and the risks that investors and others face with these transactions. By focusing on capital flows' productivity and determinants, and the policy issues they raise, this collection is a valuable resource for economists, policymakers, and financial market participants.
Download or read book INDIAN STOCK MARKET AND INSTITUTIONAL INVESTMENTS written by Dr. Sridhar Ryakala and published by Zenon Academic Publishing. This book was released on 2017-12-01 with total page 133 pages. Available in PDF, EPUB and Kindle. Book excerpt: Global integration, the widening and intensifying of links between high-income and developing countries has accelerated over the years. Over the past few years, the financial markets have become increasingly global. The Indian market has gained from foreign inflows through the investment of Foreign Institutional Investors (FIIs). Following the implementation of reforms in the securities industry in the past few years, Indian stock markets have stood out in the world ranking. During the past few years India has emerged as one of the world’s fastest growing economies. The increasing interest of foreign players in the domestic broking industry is a testimony of the stock market’s growth. The Indian stock market has also received a thrust from rise in business transactions over the years, because of sharp drop in brokerage fees and transaction costs, launch of a slew of new products, and a robust regulatory environment. The importance of institutional investors’ particularly foreign investors is very much evident as one of the routine reasons offered by market analysts’ whenever the market rises, it is attributed to foreign investors' money and no wonder we see headlines like "FIIs Fuel Rally" etc., in the business press. This is not unusual with India alone as today’s most developed economies might have seen a similar trend in the past. Domestic institutional investors on the other hand being another important section of institutional investors are playing a vital role in the Indian stock market. These investors have emerged as important players in the Indian stock market and their activities are influencing the market. There are many instances where this section of investors has stabilized the market conditions on one hand whereas their moves took the market to destabilized position on the other hand. Therefore, both FIIs and DIIs have become the most important determinants in the functioning of the Indian stock market. Thus, increasing role of these institutional investors has brought both quantitative and qualitative developments in the stock market viz., expansion of securities business, increased depth and breadth of the market, and above all their dominant investment philosophy of emphasizing the fundamentals has rendered efficient pricing of the stocks. Hence, there is a need to examine how investments made by these two groups of institutional investors’ impact each other as well as stock market returns. This book is an attempt in that direction.
