Transparency and International Portfolio Holdings
52 Pages Posted: 11 Aug 2004
Date Written: July 2004
Abstract
Does country transparency affect international portfolio investment? We examine this question by constructing new measures of transparency and by making use of a unique micro dataset on portfolio holdings of emerging market funds around the world. We distinguish between government and corporate transparency. There is clear evidence that funds invest systematically less in less transparent countries. There is also some evidence that during crises, funds flee from non-transparent countries to a greater extent.
Keywords: Opacity, international portfolio investment
JEL Classification: I20
Suggested Citation: Suggested Citation
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