Have Institutional Investors Destabilized Emerging Markets
Download Have Institutional Investors Destabilized Emerging Markets full books in PDF, epub, and Kindle. Read online free Have Institutional Investors Destabilized Emerging Markets ebook anywhere anytime directly on your device. Fast Download speed and no annoying ads. We cannot guarantee that every ebooks is available!
Author | : Mr.Brian J. Aitken |
Publisher | : International Monetary Fund |
Total Pages | : 26 |
Release | : 1996-04-01 |
Genre | : Business & Economics |
ISBN | : 145197888X |
In the past few years there has been a large increase in portfolio capital flows into emerging markets, mostly fueled by mutual funds and other institutional investors. Based on a simple variance ratio test, this paper finds that emerging stock markets as a group experienced a sharp increase in autocorrelation in total returns at a time when institutional investors began to significantly expand their holdings in these markets. These results are consistent with the view that institutional investor sentiment toward emerging markets as an asset class can at times play a critical role in determining asset prices, with shifts in sentiment resulting in periods of bubble-like booms and busts and asset price overshooting.
Author | : Brian Aitken |
Publisher | : |
Total Pages | : 26 |
Release | : 2006 |
Genre | : |
ISBN | : |
In the past few years there has been a large increase in portfolio capital flows into emerging markets, mostly fueled by mutual funds and other institutional investors. Based on a simple variance ratio test, this paper finds that emerging stock markets as a group experienced a sharp increase in autocorrelation in total returns at a time when institutional investors began to significantly expand their holdings in these markets. These results are consistent with the view that institutional investor sentiment toward emerging markets as an asset class can at times play a critical role in determining asset prices, with shifts in sentiment resulting in periods of bubble-like booms and busts and asset price overshooting.
Author | : Punam Chuhan |
Publisher | : World Bank Publications |
Total Pages | : 45 |
Release | : 1994 |
Genre | : Capital investments |
ISBN | : |
Major institutional investors in five industrial countries invest cautiously, and very little, in emerging market securities. But only in Germany are regulations on foreign investment a significant constraint.
Author | : Bruno Bonizzi |
Publisher | : |
Total Pages | : 594 |
Release | : 2016 |
Genre | : Capital market |
ISBN | : |
Author | : Mary Ann Haley |
Publisher | : |
Total Pages | : 528 |
Release | : 1999 |
Genre | : |
ISBN | : |
This dissertation explores how portfolio capital affects democratization in developing countries by examining institutional investor practices. It addresses the dilemma presented by the international finance community's meritocratic system that simultaneously rewards austerity programs and stability. The shift from public finance to private capitalization is found to facilitate an anti-democratic strain within the recent wave of democratization. Chapter 1 describes the shift from official development assistance to private finance, and the growing importance of portfolio capital in emerging markets. A brief history of investment and loan instruments is presented. Chapter 2 investigates emerging capital markets for investor coordination and asset concentration. Findings indicate emerging market funds are influenced by fund location and have high levels of asset concentration within a few funds. Preferences of institutional investors are uncovered in Chapter 3 through an investor survey of the emerging market investment criteria. Stability is consistently valued over democratic institutions, even if repressive measures are sometimes needed. Chapter 4 focuses on the systemic factors shaping international financial constraints experienced by developing countries. Five levels of coordination are presented (ideological, intra-firm, inter-firm, market-level, institutional) through which common goals and outcomes emerge, producing varying degrees of cohesion over policy direction in developing countries. Chapter 5 examines investor efforts to exercise power in developing countries by drawing parallels between domestic and international investor activism. The increase of emerging market activism, combined with the reinforcement of corporate governance regulations, augments the potential power of large investment firms in developing countries. The last chapter tests the possibility that there is a relationship between the apparent investor preference for stability over democracy and the levels of political rights and civil liberties in emerging market countries. By constructing counterfactuals and correcting selection bias, I find that the 1980s and 1990s finance capital inflows controlled by institutional investors have not, in general, helped to increase democracy. These results indicate that those countries with higher rates of market capitalization as a percent of GDP are more likely to lose freedoms over time. Country experiences with investor demands complement this quantitative analysis.
Author | : Sith Chaisurote |
Publisher | : |
Total Pages | : 188 |
Release | : 2009 |
Genre | : |
ISBN | : |
Author | : Stephany Griffith-Jones |
Publisher | : |
Total Pages | : 68 |
Release | : 1999 |
Genre | : Business & Economics |
ISBN | : |
Author | : Mr.Serkan Arslanalp |
Publisher | : International Monetary Fund |
Total Pages | : 25 |
Release | : 2015-12-17 |
Genre | : Business & Economics |
ISBN | : 151357065X |
Portfolio flows to emerging markets (EMs) tend to be correlated. A possible explanation is the role global benchmarks play in allocating capital internationally, the so-called “benchmark effect.” This paper finds that benchmark-driven investors indeed play a large role in a key segment of the market—the EM local currency government bond market—, accounting for more than one third of total foreign holdings as of end-2014. We find that the prominence of these investors declined somewhat after the May 2013 taper tantrum, but remain high. This distinction is important in understanding the drivers of EM capital flows and their sensitivity to different types of shocks. In particular, a high share of benchmark-driven investors may result in capital flows that are more sensitive to global shocks and less sensitive to country factors.
Author | : Kathryn C. Lavelle |
Publisher | : Oxford University Press |
Total Pages | : 294 |
Release | : 2004-10-14 |
Genre | : Business & Economics |
ISBN | : 019803881X |
Emerging market stock issuance relative to GDP rose in the late twentieth century to levels that roughly matched that of advanced, industrial markets. Nonetheless, the connection between owning shares of emerging market stock and the ability to influence the management of these firms remains fundamentally different from the analogous institutional connection that has evolved in industrial markets. The reasons for the differences in emerging markets are both historical and political in nature. That is, local equity markets have had the objective of providing for some degree of local ownership and control of large economic entities since the late nineteenth century. However, local markets have operated under different global political structures since that time, ranging from imperialism, to world wars, to sovereign developmental states, to neo-liberal states. Shares issued under these different structures have been reconfigured over time, resulting in a lack of convergence along either the Anglo-American or Continental models of corporate governance. The author uses a political science paradigm to explain the growth of emerging equity markets. She departs from conventional economic explanations and examines politics at the micro-level of large issues of emerging market stock. The second half of the book presents case studies dealing with emerging market countries in Latin America, Asia, Russia and Eastern Europe, Africa and the Middle East. The case studies connect the regional, state, and firm levels to detail the multiple ownership and control arrangements, and to dispel the notion that mere quantitative growth of these markets will lead to a convergence in financial institutional structures along the lines of the industrial core of the world economy.
Author | : Jerome Paul Booth |
Publisher | : |
Total Pages | : 265 |
Release | : 2014 |
Genre | : Investments, Foreign |
ISBN | : 9781118879641 |