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Author: Mr.Brian J. Aitken Publisher: International Monetary Fund ISBN: 145197888X Category : Business & Economics Languages : en Pages : 26
Book Description
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.
Author: Mr.Brian J. Aitken Publisher: International Monetary Fund ISBN: 145197888X Category : Business & Economics Languages : en Pages : 26
Book Description
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.
Author: Brian Aitken Publisher: ISBN: Category : Languages : en Pages : 26
Book Description
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.
Author: Punam Chuhan Publisher: World Bank Publications ISBN: Category : Capital investments Languages : en Pages : 45
Book Description
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.
Author: Mary Ann Haley Publisher: ISBN: Category : Languages : en Pages : 528
Book Description
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.
Author: Kathryn C. Lavelle Publisher: Oxford University Press ISBN: 019803881X Category : Business & Economics Languages : en Pages : 294
Book Description
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.
Author: Mr.Brian J. Aitken
Author: Mr.Brian J. Aitken
Author: Brian Aitken
Author: Punam Chuhan
Author: Bruno Bonizzi
Author: Mary Ann Haley
Author: Sith Chaisurote
Author: Stephany Griffith-Jones
Author: Kathryn C. Lavelle
Author: Elaine Buckberg
Author: Punam Chuhan