Transparency and International Investor Behavior
International Monetary Fund (IMF) - Research Department
Columbia Business School - Finance and Economics; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR); International Monetary Fund (IMF); Tsinghua University - School of Economics & Management
February 10, 2003
EFA 2003 Annual Conference Paper No. 325
Does country transparency affect international portfolio investment? We examine this and related questions using some new measures of transparency and a unique micro dataset on international portfolio holdings. We distinguish between government and corporate transparency. There is clear evidence that international funds invest systematically less in less transparent countries. Herding among funds tends to be more prevalent in less transparent countries. There is also some evidence that during crises, funds flee nontransparent countries by a greater amount.
Number of Pages in PDF File: 37
Keywords: financial crises, transparency, portfolio investment, emerging markets, international investors, international financial architecture, contagionworking papers series
Date posted: August 3, 2003
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