search query: @author Stulz, R. / total: 5
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| Author: | Stulz, R. Wasserfallen, W. |
| Title: | Foreign equity investment restrictions, capital flight, and shareholder wealth maximization: theory and evidence |
| Journal: | Review of Financial Studies
1995 : WINTER, VOL. 8:4, p. 1019-1058 |
| Index terms: | FOREIGN INVESTMENT CAPITAL SHAREHOLDERS |
| Language: | eng |
| Abstract: | This article provides a theory of foreign equity investment restrictions. The authors consider a model where the demand function for domestic shares differs between domestic and foreign investors because of deadweight costs in holding domestic and foreign securities that depend on the country of residence of investors. The model implies that countries benefiting from capital flight have binding ownership restrictions such that foreign investors pay a higher price for shares than domestic investors. |
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