search query: @author Janakiramanan, S. / total: 3
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| Author: | Eun, C. S. Janakiramanan, S. |
| Title: | A model of international asset pricing with a constraint on the foreign equity ownership. |
| Journal: | Journal of Finance
1986 : SEP, VOL. 41:4, p. 897-914 |
| Index terms: | CAPITAL ASSET PRICING FOREIGN INVESTMENT |
| Language: | eng |
| Abstract: | In addition to the expanded opportunity set facing investors,international investment entails two unique dimensions - the problem of exchange risk and the problem of market segmentation. A closed-form valuation model is derived in a two-country world in which domestic investors are constrained to own at most a fraction of the number of shares outstanding of the foreign firms. When the "constraint" is binding,two different prices rule in the foreign securities market,reflecting the premium offered by the domestic investors over the price under no constraints and the discount demanded by the foreign investors. |
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