 Do institutional factors influence cross-border portfolio equity flows? New evidence from emerging marketsStefano Alderighi, Siobhan Cleary and Padmasai Varanasi Journal of International Money and Finance, 2019, vol. 99, issue C Abstract: We exploit a proprietary database containing foreign trading data from 20 stock exchanges for the 2006–2018 period to expand the existing evidence on cross-border equity flows towards emerging markets. In particular, after briefly assessing the relevance of push and pull factors, we study whether explicit and implicit barriers to investment, corporate governance standards and market structure features influence cross border equity inflows. We find that pull factors are an important determinant of foreign inflows, while push factors have a smaller influence. More importantly, we find that removing explicit barriers to investment and adopting stricter corporate governance practices has a long-run positive relation with inflows, conditional on push and pull factors. Removing information barriers also matters, but relatively less. Market structure features have instead little influence on cross-border flows towards emerging markets. Keywords: Portfolio equity flows; Emerging markets; Push and pull factors; Capital controls; Corporate governance (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jimfin:v:99:y:2019:i:c:s0261560618306491 DOI: 10.1016/j.jimonfin.2019.102070 Access Statistics for this article Journal of International Money and Finance is currently edited by J. R. Lothian More articles in Journal of International Money and Finance from Elsevier |
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