Cover IMF Working Papers
Transparency and International Investor Behavior
Author: Shang-Jin Wei and Mr. R. G Geloshttps://orcid.org/0000-0003-4362-676X
Series:
IMF Working Papers
Volume/Issue:
Volume 2002: Issue 174
Language:
English
Publication Date:
01 Oct 2002
DOI:
https://doi.org/10.5089/9781451858709.001
ISBN:
9781451858709
ISSN:
1018-5941
Pages:
39
Keywords:
WP; cost of capital; country asset allocation; composite index; fund manager; financial crises; transparency; portfolio investment; emerging markets; international investors; international financial architecture; contagion; emerging market equity funds; investment behavior; MSCI indices; aggregate equity fund; Emerging and frontier financial markets; Market capitalization; Stock markets; Accounting standards; Asset allocation; Global
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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Does country "transparency" affect international portfolio investment? We examine this and related questions using a unique micro dataset on international portfolio holdings. We employ various indices of government and corporate transparency, focusing on the availability and quality of information. We find that emerging market equity funds hold fewer assets in less transparent countries. Herding among funds is somewhat less prevalent in more transparent countries. During the Asian and Russian crises, emerging market funds withdrew more strongly from less transparent countries after controlling for other risk factors. However, funds tend to react less strongly to news from more opaque markets.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund

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