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Investor protection and international equity portfolio investments

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  • Poshakwale, Sunil S.
  • Thapa, Chandra

Abstract

The paper examines the influence of investor protection on international equity portfolio investments. Using bilateral portfolio holdings data for 36 countries for 2001–2006, the study demonstrates that the investor protection measures are important determinants of foreign equity portfolio investments. The findings suggest that by improving the quality and enforcement efficiency of legal protections offered to foreign investors, policymakers may be able to attract greater international equity portfolio investments.

Suggested Citation

  • Poshakwale, Sunil S. & Thapa, Chandra, 2011. "Investor protection and international equity portfolio investments," Global Finance Journal, Elsevier, vol. 22(2), pages 116-129.
    • Handle: RePEc:eee:glofin:v:22:y:2011:i:2:p:116-129
    DOI: 10.1016/j.gfj.2011.10.003
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    Cited by:

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    2. Mishra, Anil V., 2016. "Foreign bias in Australian-domiciled mutual fund holdings," Pacific-Basin Finance Journal, Elsevier, vol. 39(C), pages 101-123.
    3. Patricia Lindelwa Makoni, 2020. "Foreign Portfolio Investments, Exchange Rates and Capital Openness: A Panel Data Approach," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 100-113.
    4. Giofré, Maela, 2017. "Financial education, investor protection and international portfolio diversification," Journal of International Money and Finance, Elsevier, vol. 71(C), pages 111-139.
    5. Mishra, Anil V., 2017. "Foreign bias in Australia's international equity holdings," Review of Financial Economics, Elsevier, vol. 33(C), pages 41-54.
    6. Ante Džidić Silvije Orsag, 2019. "Dividend Smoothing and Investor Protection," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 22(2), pages 55-70, November.
    7. Eichler, Stefan & Nauerth, Jannik André, 2024. "Bilateral investment treaties and portfolio investment," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 91(C).
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    9. Kwabi, Frank Obenpong & Boateng, Agyenim & Wonu, Chizindu & Kariuki, Charles & Du, Anna, 2023. "Political uncertainty and cross-border equity portfolio allocation decisions: International evidence," International Review of Financial Analysis, Elsevier, vol. 87(C).
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    12. Giofré, Maela, 2013. "Investor protection rights and foreign investment," Journal of Comparative Economics, Elsevier, vol. 41(2), pages 506-526.
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    More about this item

    Keywords

    International equity portfolio investments; Investor protection; Developed and developing countries; Fixed effect models;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation

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