Financial Crisis in Russia: The Behavior of Non-Residents
Kolodyazhny Georgy () and
Medvedev Alexey ()
EERC Working Paper Series from EERC Research Network, Russia and CIS
This study focuses on the behavior of non-resident investors during the Russian financial crisis of 1997–1998. Two hypotheses that explain the destabilizing behavior of non-residents were considered and tested. First, non-residents had relatively more attractive alternative investment opportunities than residents, which explains their overreaction to changes in market fundamentals. Second, non-residents imitated the actions of a leader — the largest foreign investor (herding behavior). Results of the empirical testing of the theoretical implications suggest that the first hypothesis does not fully explain all the stylized facts. We found that the actions of the leader had a significant impact on other non-residents’ actions, which supports the herding behavior hypothesis.
Pages: 53 pages
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
https://eercnetwork.com/default/download/creater/w ... 58eb1b3aca7c4ddb.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eer:wpalle:2k/12e
Ordering information: This working paper can be ordered from
EERC Research Network, Russia and CIS, 92/94, Dmytrivska Str., suite 404, Kyiv, 01135 Ukraine
Access Statistics for this paper
More papers in EERC Working Paper Series from EERC Research Network, Russia and CIS EERC Research Network, Russia and CIS, 92/94, Dmytrivska Str., suite 404, Kyiv, 01135 Ukraine.
Bibliographic data for series maintained by Anton Pashchenko ().