search query: @indexterm Foreign investment / total: 1949
reference: 327 / 1949
| Author: | Bailey, W. |
| Title: | Foreign ownership restrictions and equity price premiums: what drives the demand for cross-border investments? |
| Journal: | Journal of Financial and Quantitative Analysis
1999 : DEC, VOL. 34:4, p. 489-512 |
| Index terms: | PRICES DEMAND FOREIGN INVESTMENT |
| Language: | eng |
| Abstract: | The authors study the impact of barriers to international capital flows with stock price data from 11 countries whose stock markets feature shares restricted to locals and otherwise identical shares available to foreigners. Large price premiums for unrestricted shares relative to matching restricted shares are typically observed. Although basic notions of international asset pricing offer a straightforward explanation for the price premiums, they find little evidence that the price premiums are explained by lower foreign required returns. |
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