The Investment Technology of Foreign and Domestic Institutional Investors in an Emerging Market
Ila Patnaik () and
No 2013/090, IMF Working Papers from International Monetary Fund
The literature on the investment technology of foreign versus domestic investors has inconclusive results. This paper revisits the question, with a focus on decomposing portfolio performance into asset allocation and security selection. We document signicant 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 diferences in asset allocation. Our results show that foreign investors in India do remarkably poorly at security selection.
Keywords: WP; DII investment; DII ownership; firm beta; R&D company; chosen firm; firm characteristic; Institutional Investor; Foreign Investors; Domestic Institutional Investors; bottom quintile company; Asset allocation; Productivity; Asset prices; Stock markets; Production growth; Global (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed
Downloads: (external link)
Journal Article: 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)
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:imf:imfwpa:2013/090
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().