Existing studies of country funds utilize return measures and do not consider the effects of investor risk specifically. We examine the time-varying asymmetric investor risk hypothesis for country fund premiums and find that volume and volatility in both the U.S. and foreign markets are generally important. While the U.S. volume and volatility are more important than similar foreign variables o...

The authors model trading by foreign and domestic investors in developed-country equity markets. The key assumptions are that (i) both the foreign and domestic investor populations contain investors of different sophistication, and (ii) investor sophistication matters for performance in both public equity and private off-market investments. A quantitative model with these assumptions delivers a...

Building on Schnitzer (1998), this paper develops a model of strategic interaction between a foreign direct investor, a host country, and the investor’s country. By including the investor country we are able to consider the impact of political retaliation on the likelihood of expropriation. The model confirms that expropriation is more likely for lower technology sectors and site-specific asset...

Foreign direct investment (FDI) is an investment in a business by an investor from another country for which the foreign investor has control over the company purchased. The need for foreign capital for a developing country like India could arise on account of the following reasons reasons. Foreign capital is usually essential atleast as temporary measure during the period of development. Forei...

For several years prior to 2010, countries in the euro area periphery engaged in heavy borrowing from foreign private investors, allowing domestic spending to outpace incomes. Now these countries face debt crises refl ecting a loss of investor confi dence in the sustainability of their fi nances. The result has been an abrupt halt in private foreign lending to these economies. This study explai...

This paper determines the equilibrium market structure in a mixed international oligopoly, where the state assets are sold at an auction. The model suggests that low greenÞeld costs and low trade costs induce foreign acquisitions. The intuition is that domestic Þrms can then not prevent foreign Þrms from becoming strong competitors and thus, their willingness to pay for the state assets is low....

We examine herding behavior of domestic and foreign investors in the Indonesian stock market. We document that both domestic and foreign investors from a particular brokerage firm tend to herd. The foreign investors exhibit a greater propensity to herd than domestic investors. However, when examining investor trading across brokerage firms, we find only weak evidence of herding by domestic inve...

The term ‘investor relations’ (IR) often refers only to the very formal and primarily anonymous relations and communication between publicly traded companies and their (potential) shareholders. Especially for young and not yet publicly traded companies (socalled start-ups), it can be shown that the individual contact to a very small and well-known group of investors (e.g., venture capital inves...

There are no laws preventing a host government from seizing the capital of a foreign direct investment in its borders and then denying any compensation for the foreign investor. Why then do we not see many more expropriations of investor capital by host governments? Compiling a database of expropriations within the minerals sectors of developing countries, we show that there is punishment for e...