Stock price synchronicity at a country level has been the subject of many previous studies, but for most investors it is more relevant at a firm level. Working from the perspective of a foreign investor stock price synchronicity is analyzed at the firm-level in the hot Chinese stock market. The impact of foreign ownership, institutional ownership, the concentration of large shareholders, and au...

The Greek restructuring of March 2012 illustrates how non-price contract terms can have a significant effect on the pricing of sovereign debt. In the Greek restructuring, bonds governed by local law suffered NPV haircuts in the range of 60-75%, whereas those bonds governed by foreign law were paid in full and on time. Other contract parameters such as the currency in which the debt is denominat...

This paper examines tax competition between a unionized and a nonunionized country for the location of an outside firm. We show that unionization offers an extra incentive for the government to attract a foreign competitor to a concentrated domestic market, in order to limit the power of the domestic union. This results in the unionized country’s government offering a tax discount (or a subsidy...

We study the effect of foreign fund flows on asset prices by investigating the link between foreign institutional investor (FII) flows and stock returns in India. Stocks experiencing high innovations in order flow are associated with a permanent price increase, whereas stocks experiencing low innovations are associated with a partly-transient price decline. The differential abnormal return betw...

Foreign direct investment in developing countries has recently received a renewed attention as a major determinant of financial development. Indeed, where markets are financially constrained, foreign investment offers a viable financing opportunity assorted with a transfer of technological and managerial know-how. In this paper, we examine the determinants of foreign investors’ participation in...

This study examines whether the heterogeneity among foreign institutional investors (FIIs) matters when investing in socially responsible investee firms. Exploiting a mandated corporate social responsibility (CSR) regulation India and using manually collected CSR expenditure data, results of quasi-natural experiment confirm that firms comply with mandate attract greater investment from FIIs. po...