International Portfolio Flows and Security Markets
Open accessAbstract
This paper provides an analysis of the impact of international portfolio flows on security returns. It concludes that opening a country to portfolio flows decreases its cost of capital without adverse effects on its securities markets. There is no convincing evidence that portfolio flows increase the volatility of equity returns, lead to excessive co-movement of a country's equity returns with world equity returns, or destabilize security markets. Though there has been much concern about contagion, existing empirical evidence does not provide conclusive evidence that contagion is economically important for security markets.
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Liberalization of capital markets in many countries has increased the flow of foreign investment into them.
“The liberalization of capital markets in many countries has increased not only the flow of foreign investment into them, as Henry (2000) and Stulz (1999) document”
From Investor protection and corporate governance (2000) · cites this paper as Stulz (1999)
Cites
Preferences for Stock Characteristics As Revealed by Mutual Fund Portfolio Holdings
FALKENSTEIN, E. G. (1996) · The Journal of Finance · doi:10.1111/j.1540-6261.1996.tb05204.x · Cited by 1,058 · see citing works
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Investor protection and corporate governance
La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. (2000) · Journal of Financial Economics · doi:10.1016/s0304-405x(00)00065-9 · Cited by 6,848 · see citing works
Do stock market liberalizations cause investment booms?
Henry, P. B. (2000) · Journal of Financial Economics · doi:10.1016/s0304-405x(00)00073-8 · Cited by 864 · see citing works
- Authors
- Stulz, R. M.
- Venue
- SSRN Electronic Journal
- Publisher
- Elsevier BV
- Published
- 1999
- ISSN
- 1556-5068 (ISSN-L)
- OpenAlex
- W1597277993
- Cited by
- 276
- References
- 1
- Citations by year
- 2025: 2 · 2024: 1 · 2023: 7 · 2022: 6 · 2021: 2 · 2020: 5 · 2019: 9 · 2018: 4 · 2017: 11 · 2016: 5 · 2015: 5 · 2014: 6 · 2013: 13 · 2012: 20
- Type
- posted content
- Language
- en
- Open access
- green
- doi.org
- Locations
- SSRN Electronic Journal (acceptedVersion)
- Topics
- Social Sciences › Economics, Econometrics and Finance › Finance › Global Financial Crisis and Policies
- Social Sciences › Economics, Econometrics and Finance › Finance › Financial Risk and Volatility Modeling
- Social Sciences › Economics, Econometrics and Finance › Finance › Financial Markets and Investment Strategies
- Keywords
- security returns, cost of capital, stock market volatility, financial contagion, capital account liberalization
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