Barriers to Long-Term Cross-Border Investing: A Survey of Institutional Investor Perceptions

11 Pages Posted: 17 Sep 2014 Last revised: 19 Feb 2016

See all articles by Rachel Harvey

Rachel Harvey

Committee on Global Thought, Columbia University

Patrick Bolton

Columbia Business School - Department of Economics; Centre for Economic Policy Research (CEPR); National Bureau of Economic Research (NBER); European Corporate Governance Institute (ECGI)

Laurence H. Wilse-Samson

Columbia University

Li An

Tsinghua University - PBC School of Finance

Frédéric Samama

SWF Research Initiative, Amundi

Date Written: September 17, 2014

Abstract

Because of market failures, domestic investment resources are often insufficient to fully finance the public and private capital formation critical to global wealth preservation and growth. It is thus important to understand the factors that drive cross-border investments, including the potential fit between the objectives of international long-term investors and public policy objectives. This article reports the results of a survey of such investors. This research revealed that foreign policy factors were most likely to affect cross-border investment decisions; other influential factors included organizational issues. The survey also found a surprising gap between the responding funds’ aspiration to be long-term investors and their apparent willingness and/or ability to implement long-term investment strategies. These findings highlight the importance of a facilitative policy environment for understanding the benefits of, and implementing, long-horizon cross-border investments.

Keywords: Co-investing, Investment Regulation, Pension Fund, Public Goods, Short-Termism, Sovereign Wealth Funds

Suggested Citation

Harvey, Rachel and Bolton, Patrick and Wilse-Samson, Laurence H. and An, Li and Samama, Frederic, Barriers to Long-Term Cross-Border Investing: A Survey of Institutional Investor Perceptions (September 17, 2014). Rotman International Journal of Pension Management, Vol. 7, No. 2, 2014; Columbia Business School Research Paper No. 14-43; PBCSF-NIFR Research Paper No. 14-04. Available at SSRN: https://ssrn.com/abstract=2497516 or http://dx.doi.org/10.2139/ssrn.2497516

Rachel Harvey (Contact Author)

Committee on Global Thought, Columbia University ( email )

3022 Broadway
New York, NY 10027
United States

Patrick Bolton

Columbia Business School - Department of Economics ( email )

420 West 118th Street
New York, NY 10027
United States

HOME PAGE: http://www0.gsb.columbia.edu/faculty/pbolton/

Centre for Economic Policy Research (CEPR)

London
United Kingdom

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

European Corporate Governance Institute (ECGI)

c/o ECARES ULB CP 114
B-1050 Brussels
Belgium

HOME PAGE: http://www.ecgi.org

Laurence H. Wilse-Samson

Columbia University ( email )

420 West 118th Street
New York, NY 10027
United States

Li An

Tsinghua University - PBC School of Finance ( email )

No. 43, Chengdu Road
Haidian District
Beijing 100083
China

Frederic Samama

SWF Research Initiative, Amundi ( email )

91-93, boulevard Pasteur
Paris, 75015
France

Register to save articles to
your library

Register

Paper statistics

Downloads
199
Abstract Views
1,234
rank
156,260
PlumX Metrics