Does U.S. Investor Sentiment Attract Foreign Investors?

9 Pages Posted: 28 May 2021 Last revised: 24 Jan 2022

See all articles by Maurizio Montone

Maurizio Montone

Utrecht University

Valerio Potì

University College Dublin

Remco C. J. Zwinkels

VU University Amsterdam - Department of Finance and Financial Sector Management

Date Written: September 1, 2021

Abstract

Previous research shows that high sentiment among U.S. investors increases real investment both domestically and abroad. In this paper, we show that high sentiment among U.S. investors also prompts financially developed countries to invest more in the United States, especially if they exhibit a high level of educational attainment. The results suggest that the real effects of sentiment are larger than previously thought.

Keywords: Investor sentiment, Foreign direct investments, Financial development, Educational attaiment

JEL Classification: G10, G30, F21, J30.

Suggested Citation

Montone, Maurizio and Potì, Valerio and Zwinkels, Remco C.J., Does U.S. Investor Sentiment Attract Foreign Investors? (September 1, 2021). Available at SSRN: https://ssrn.com/abstract=3853542 or http://dx.doi.org/10.2139/ssrn.3853542

Maurizio Montone

Utrecht University ( email )

Kriekenpitplein 21-22
Adam Smith Building
Utrecht, +31 30 253 7373 3584 EC
Netherlands

Valerio Potì

University College Dublin ( email )

M. Smurfit School of Business
Carysfort Avenue, Blackrock
Dublin, Co Dublin
Ireland

HOME PAGE: http://https://people.ucd.ie/valerio.poti

Remco C.J. Zwinkels (Contact Author)

VU University Amsterdam - Department of Finance and Financial Sector Management ( email )

De Boelelaan 1105
Amsterdam, NL-1081HV
Netherlands
+31 20 59 85220 (Phone)

HOME PAGE: http://research.vu.nl/en/persons/remco-zwinkels

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