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Business and Economics > Investments: Stocks

You are looking at 1 - 10 of 82 items for :

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Cover IMF Working Papers
Knowledge Diffusion Through FDI: Worldwide Firm-Level Evidence
JaeBin Ahn
,
Chan Kim
,
Nan Li
, and
Andrea Manera
This paper examines the impact of Foreign Direct Investment (FDI) on knowledge diffusion by analyzing the effect of firm-level FDI activities on cross-border patent citations. We construct a novel firm-level panel dataset that combines worldwide utility patent and citations data with project-level greenfield FDI and crossborder mergers and acquisitions (M&A) data over the past two decades, covering firms across 60 countries. Applying a new local projection difference-indifferences methodology, our analysis reveals that FDI significantly enhances knowledge flows both from and to the investing firms. Citation flows between investing firms and host countries increase by up to around 10.6% to 13% in five years after the initial investment. These effects are stronger when host countries have higher innovation capacities or are technologically more similar to the investing firm. We also uncover knowledge spillovers beyond targeted firms and industries in host countries, which are particularly more pronounced for sectors closely connected in the technology space.
Keywords:
Greenfield FDI; Brownfield FDI; cross-border M&A; Inward FDI; Outward FDI; Knowledge spillover; Patent citation; LP-DiD; investing firm; FDI activity; FDI measure; impacts of FDI; Foreign direct investment; Spillovers; Absorptive capacity; Stocks; Global
Cover IMF Working Papers
Measuring Multinational Production with Foreign Direct Investment Statistics: Recent Trends, Challenges, and Developments
Bruno Casella
,
Maria Borga
, and
Mr. Konstantin Wacker
In a complex global production landscape, the quest for measures of economic activity by multinational enterprises (MNEs) has become more pressing. Foreign Direct Investment (FDI) statistics, which capture financing aspects of MNEs, have often been used as a proxy for multinational production given their wide availability and cross-country comparability, but concerns that multinational production occurs in different countries than where financial positions are recorded call this practice into question. This paper revisits the main objections to the use of FDI as a proxy for multinational production, explores counterarguments, and provides guidance on the use of FDI statistics to measure multinational production.
Keywords:
FDI; multinational production; multinational enterprises; foreign affiliates; FDI statistics; FDI data; conduit FDI; FDI stock; Foreign direct investment; Special purpose vehicle; Stocks; Offshore financial centers; Global
Cover IMF Staff Country Reports
Belarus: Technical Assistance Report-Financial Accounts and Balance Sheet Statistics Mission
International Monetary Fund. Statistics Dept.
The remote technical assistance (TA) mission provided guidance to the National Statistical Committee of the Republic of Belarus (BelStat) on the preliminary estimates of the Financial Accounts and Balance Sheets (FABS) for 2017. The TA mission assisted with compiling the revaluation and the other changes in volume accounts to give better consistency to the financial flows and stocks and improve the reconciliation process of the FABS. BelStat is in charge of compiling the current accounts for all the institutional sectors and is starting to compile the financial accounts for which important progress has been made. To regularly compile FABS, the mission recommended that BelStat addresses the discrepancies between the net lending/borrowing from the capital and the financial account by incorporating more data sources such as government’s financial stocks and business accounting data. The TA mission also provided guidance on compiling the Financial Intermediation Services Indirectly Measured (FISIM) to get a more consistent estimate. The mission highlighted the progress made and encouraged BelStat to continue working on compiling FABS for 2017 and onwards.
Keywords:
financial accounts; balance sheets; stocks; flows; balance sheet Statistics; IMF's Statistics Department; balance sheet statistics; business accounting data; BelStat staff; accounting data; Financial statements; Fiscal accounting and reporting; Capital account
Cover IMF Staff Country Reports
Belarus: Technical Assistance Report-Financial Accounts and Balance Sheet Statistics Mission
International Monetary Fund. Statistics Dept.
The remote technical assistance (TA) mission provided guidance to the National Statistical Committee of the Republic of Belarus (BelStat) on the preliminary estimates of the Financial Accounts and Balance Sheets (FABS) for 2017. The TA mission assisted with compiling the revaluation and the other changes in volume accounts to give better consistency to the financial flows and stocks and improve the reconciliation process of the FABS. BelStat is in charge of compiling the current accounts for all the institutional sectors and is starting to compile the financial accounts for which important progress has been made. To regularly compile FABS, the mission recommended that BelStat addresses the discrepancies between the net lending/borrowing from the capital and the financial account by incorporating more data sources such as government’s financial stocks and business accounting data. The TA mission also provided guidance on compiling the Financial Intermediation Services Indirectly Measured (FISIM) to get a more consistent estimate. The mission highlighted the progress made and encouraged BelStat to continue working on compiling FABS for 2017 and onwards.
Keywords:
financial accounts; balance sheets; stocks; flows; balance sheet Statistics; IMF's Statistics Department; balance sheet statistics; business accounting data; BelStat staff; accounting data; Financial statements; Fiscal accounting and reporting; Capital account
Cover IMF Working Papers
Capital Flow Data – A Guide for Empirical Analysis and Real-time Tracking
Mr. Robin Koepke
and
Simon Paetzold
This paper provides an analytical overview of the most widely used capital flow datasets. The paper is written as a guide for academics who embark on empirical research projects and for policymakers who need timely information on capital flow developments to inform their decisions. We address common misconceptions about capital flow data and discuss differences between high-frequency proxies for portfolio flows. In a nowcasting “horse race” we show that high-frequency proxies have significant predictive content for portfolio flows from the balance of payments (BoP). We also construct a new dataset for academic use, consisting of monthly portfolio flows broadly consistent with BoP data.
Keywords:
WP; flow data; portfolio flow; debt flow; flow proxy; IMF balance of payments statistic; portfolio flows; fund flows; balance of payments; coincident indicators; IIF data; IMF balance of payments data; Capital flows; Stocks; Balance of payments statistics; Flow of funds; Emerging and frontier financial markets; Africa; Global
Cover IMF Working Papers
International Capital Flows at the Security Level – Evidence from the ECB’s Asset Purchase Programme
Katharina Bergant
,
Michael Fidora
, and
Martin Schmitz
We analyse euro area investors' portfolio rebalancing during the ECB's Asset Purchase Programme at the security level. Our empirical analysis shows that euro area investors (in particular investment funds and households) actively rebalanced away from securities targeted under the Public Sector Purchase Programme and other euro-denominated debt securities, towards foreign debt instruments, including `closest substitutes', i.e. certain sovereign debt securities issued by non-euro area advanced countries. This rebalancing was particularly strong during the first six quarters of the programme. Our analysis also reveals marked differences across sectors as well as country groups within the euro area, suggesting that quantitative easing has induced heterogeneous portfolio shifts.
Keywords:
WP; euro; PSPP substitute; PSPP eligibility; debt securities; euro area; capital flow; investment funds; Securities; Mutual funds; Capital flows; Stocks; Unconventional monetary policies; Global; International investment patterns; sovereign debt; investor heterogeneity; quantitative easing; PSPP eligible; investors show; Euro area investor; security holding; euro-denominated securities; long-term debt; net purchase; portfolio shift; PSPP securities
Cover IMF Working Papers
International Financial Connection and Stock Return Comovement
Mr. Sakai Ando
This paper studies whether bilateral international financial connection data help predict bilateral stock return comovement. It is shown that, when the United States is chosen as the benchmark, a larger U.S. portfolio investment asset position on the destination economy predicts a stronger stock return comovement between them. For large economies such as the United States and Germany, the portfolio investment position is also the best predictor among other connection variables. The paper discusses with a simple general equilibrium portfolio model that the empirical pattern is consistent with the behavior of index investors who trade in response to risk-on/risk-off shocks.
Keywords:
WP; risk tolerance; stock return comovement; international investment position; risk-on; risk-off; comovement variable; portfolio investment position; stock return correlation; asset data; stock return behavior; portfolio investment data; comovement data; asset economy; equity return; Stocks; Portfolio investment; Stock markets; Foreign direct investment; Bond yields; Global
Cover IMF Working Papers
The Measurement of External Accounts
Gustavo Adler
,
Mr. Daniel Garcia-Macia
, and
Signe Krogstrup
Growing international integration in trade and finance can challenge the measurement of external accounts. This paper presents a unified conceptual framework for identifying sources of mismeasurement of foreign investment income in current account balances. The framework allows to derive a precise definition of measurement distortions and an empirical strategy for estimating their importance. As an application, we empirically estimate two specific distortions related to inflation and retained earnings on portfolio equity for a broad set of countries. We find these may explain a non-trivial share of current account imbalances and that they are particularly relevant in countries with large external investment positions. We also discuss how merchanting and profit-shifting activities could lead to measurement distortions. We suggest areas for future research and underline the need to strengthen data collection efforts.
Keywords:
WP; Current Account; Measurement; External Imbalances; Global Imbalances.; portfolio equity; inflation distortion; liabilities position; retained earnings distortion; inflation income; equity instrument; distortion distortion; inflation income in country c; inflation expectation; current account flow; current account statistics; current account measure; Income; Wages; Stocks; Inflation; Global
Cover IMF Working Papers
Media Sentiment and International Asset Prices
Samuel P. Fraiberger
,
Dongyeol Lee
,
Mr. Damien Puy
, and
Mr. Romain Ranciere
We assess the impact of media sentiment on international equity prices using more than 4.5 million Reuters articles published across the globe between 1991 and 2015. News sentiment robustly predicts daily returns in both advanced and emerging markets, even after controlling for known determinants of stock prices. But not all news-sentiment is alike. A local (country-specific) increase in news optimism (pessimism) predicts a small and transitory increase (decrease) in local returns. By contrast, changes in global news sentiment have a larger impact on equity returns around the world, which does not reverse in the short run. We also find evidence that news sentiment affects mainly foreign – rather than local – investors: although local news optimism attracts international equity flows for a few days, global news optimism generates a permanent foreign equity inflow. Our results confirm the value of media content in capturing investor sentiment.
Keywords:
WP; equity fund; Asset Pricing; Capital Flows; Behavioral Finance; Investor Sentiment; News Media; Natural Language Processing; sentiment shock; sentiment index; state dependence; D. News sentiment; multi-country news; equity return; equity price; Stocks; Asset prices; Stock markets; Emerging and frontier financial markets; Global
Cover Coordinated Portfolio Investment Survey Guide (Third Edition)
Coordinated Portfolio Investment Survey Guide (Third Edition)
Venkat Josyula

Abstract

This third edition of the Coordinated Portfolio Investment Survey Guide has been prepared to assist economies that participate or are preparing to participate in the Coordinated Portfolio Investment Survey (CPIS). It builds on and updates the second edition of the CPIS Guide (2002) to reflect the adoption of the Balance of Payments and International Investment Position Manual, sixth edition (BPM6) as the standard framework for compiling cross-border position statistics.

Keywords:
M&G; portfolio investment data collection system; investment; CPIS data template; survey questionnaire; investment survey; CPIS metadata questionnaire; Securities; Portfolio investment; Stocks; Foreign direct investment; Bonds; Global; Caribbean; CPIS data; securities holding; portfolio investment liability; liability position; CPIS Task Force; portfolio investment securities; Business enterprises