The investment technology of foreign and domestic institutional investors in an emerging market

Ila Patnaik and Ajay Shah

Journal of International Money and Finance, 2013, vol. 39, issue C, 65-88

Abstract: We compare the investment technology of foreign versus domestic investors with a focus on decomposing outcomes attributable to asset allocation and security selection. We document significant differences in exposure to systematic asset pricing factors between foreign and domestic investors. A quasi-experimental strategy is introduced, for comparing security selection after controlling for differences in asset allocation. Our results show that foreign investors in India fare poorly at security selection, while domestic investors fare well.

Keywords: Asset allocation; Security selection; Foreign investment; Domestic investment (search for similar items in EconPapers)
JEL-codes: G11 G12 G14 G32 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (6)

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Related works:
Working Paper: The Investment Technology of Foreign and Domestic Institutional Investors in an Emerging Market (2013)
Working Paper: The investment technology of foreign and domestic institutional investors in an emerging market (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jimfin:v:39:y:2013:i:c:p:65-88

DOI: 10.1016/j.jimonfin.2013.06.019

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