Institutional Investors in Global Capital Markets

001View_ Institutional Investors in Global Capital Markets, as a PDF.Institutional_Investors......Page 1
 International finance review......Page 2
003View_ International Finance Review, as a PDF.International_Finance......Page 3
 List of contributors......Page 4
  bm_......Page 7
 Outline placeholder......Page 0
  Part I: Introduction to institutional investors in global capital markets......Page 8
  Part II: Institutional investors: Their economic and financial impact......Page 10
  Part III: Investment preferences of institutional investors......Page 12
  Part IV: The benefits of Sovereign wealth fund investments......Page 13
  Part V: Sovereign wealth funds: Do political objectives drive their asset allocationquest......Page 14
  References......Page 17
 Financial liberalization and foreign institutional investors: Literature review......Page 19
  Introduction......Page 20
  Financial liberalization and international capital flows......Page 21
   Liberalization and Market Activity......Page 27
   Liberalization and Home Bias in Portfolio Investment......Page 29
   Are Foreign Investors Momentum or Contrarian Investors?......Page 32
   Do Foreign Investors Destabilize Developing Markets?......Page 35
   Target Firm Characteristics......Page 37
   Market Characteristics......Page 39
   Foreign versus Domestic Institutional Investors......Page 41
  The role of foreign institutional investors......Page 43
  Conclusion......Page 47
  Notes......Page 49
  References......Page 50
 Institutional investment horizon and firm credit ratings......Page 53
  Introduction......Page 54
  Related literature and hypothesis......Page 57
   Firm Credit Ratings......Page 60
   Institutional Investors’ Horizon......Page 61
   Research Design......Page 62
   Univariate Tests......Page 63
   Regression Analysis......Page 64
   Robustness Tests......Page 70
  Conclusion......Page 78
  Notes......Page 79
  References......Page 80
 Divestment of foreign strategic investment in China’s banking sector: Causes and consequences......Page 85
  Introduction......Page 86
   Previous Studies......Page 88
   Why Do Foreign Financial Institutions Divest in Chinaquest......Page 89
  Business cooperation......Page 100
  Stock market reactions to the divestment announcement......Page 103
  Conclusions......Page 107
  Notes......Page 108
  References......Page 110
 Domestic and foreign institutional investor behavior in China: Financial characteristics and corporate governance......Page 113
  Introduction......Page 114
   Preference of Foreign Investors......Page 118
   QFII: A Formal Classification and Recent Developments......Page 119
   Empirical Evidence on QFII......Page 125
   Industry Characteristics......Page 126
   Financial Characteristics......Page 127
   Corporate Governance Characteristics......Page 129
   Industrial Distribution......Page 130
   Foreign and Domestic Funds: An Empirical Comparison......Page 134
  Conclusions......Page 138
  Notes......Page 139
  References......Page 141
 Institutional investors’ participation in foreign firms: Evidence from ADRs......Page 144
  Introduction......Page 145
   Firm-Level Determinants......Page 148
   Country-Level Determinants......Page 150
   Firm-Level Variables......Page 151
   Country-Level Variables......Page 153
   Univariate Analysis Results......Page 157
   Multivariate Analysis Results......Page 162
  Notes......Page 165
  References......Page 166
 Do foreign institutional investors (FIIs) exhibit herding and positive feedback trading in Indian stock marketsquest......Page 168
   Background......Page 169
  Literature review......Page 170
   Indian Evidence......Page 174
    Analysis of Herding......Page 175
    Analysis of Positive Feedback Trading......Page 176
   Herding......Page 177
    Herding during Bull Phase of the Market......Page 178
    Pratio......Page 179
    Pratio during Bear Phase......Page 180
    Nratio during Bear Phase......Page 181
  References......Page 182
 Do financial conglomerates have an incentive to prevent managers of other firms from pursuing their own interestquest......Page 185
  Introduction......Page 186
    Assumptions and Sequence of Events......Page 190
    The Performance of the Mutual Fund......Page 193
    The Behavior of the Bank......Page 194
   Equilibrium Conditions......Page 196
  Concluding remarks......Page 198
  Notes......Page 199
  References......Page 200
 The impact of foreign government investments: Sovereign wealth fund investments in the United States......Page 203
  Introduction......Page 204
  Data description......Page 209
   Stated Objectives and Investment Characteristics......Page 211
   What Attracts SWF Investmentsquest......Page 213
   Univariate Analysis......Page 215
   Market reaction around the 13D filing......Page 218
   Explaining the cross-sectional differences in market reaction......Page 220
   Temporary Price Impact......Page 222
   Long-Run Impact of SWF Investments......Page 224
   Firm Performance......Page 226
   SWFs Investments’ Effect on Tobin’s q......Page 228
  Notes......Page 231
  Acknowledgments......Page 233
  References......Page 234
 What do sovereign wealth funds imply for financial stability?......Page 240
  Introduction......Page 241
  Literature review......Page 244
   Data......Page 247
   Methodology......Page 249
  Empirical results......Page 252
  Notes......Page 255
  References......Page 256
 Africa’s quest for development: Can sovereign wealth funds helpquest......Page 258
   African SWFs Motives......Page 262
   African SWFs Size......Page 264
   African SWFs Governance Structures......Page 265
   African SWFs Investments......Page 266
   African SWFs Reputation......Page 267
  What are foreign SWFs doing in Africaquest......Page 270
  What are the benefits of SWFs for African economiesquest......Page 271
  What are the challenges facing SWFs INVESTMENTS in Africaquest......Page 276
  Concluding remarks......Page 277
  Notes......Page 279
  References......Page 280
  Subsidiaries of the Libyan Investment Authority......Page 282
  Linaburg-Maduell Transparency Index......Page 284
 Portfolio allocation for sovereign wealth funds in the shadow of commodity-based national wealth......Page 286
  Introduction......Page 287
  Sovereign wealth funds as investors......Page 289
  Sovereign wealth funds as national guardians......Page 291
  Methodology and data......Page 294
  The results......Page 297
  The risk-adjusted return results......Page 298
  Conclusion......Page 301
  References......Page 302
  - List of Total Return Assets......Page 305
 Are sovereign wealth funds politically biased? A comparison with other institutional investors......Page 306
  Introduction......Page 307
  Literature review and stylized facts......Page 309
   Defining a Benchmark for SWFs......Page 311
   Toward Better Regulation......Page 312
   Portfolio Characteristics......Page 314
    Geographical Distribution......Page 316
    Sector and Industry Distribution......Page 318
   Investment in OECD and non-OECD Countries......Page 319
  SWF investments: The Political Dimension......Page 322
   Internal Governance and Investment Strategy......Page 323
    Political Regimes......Page 324
  Conclusions......Page 328
  Notes......Page 330
  References......Page 333
  ANNEXES......Page 337
  Truman’s Investment Indicators for Commodity and Noncommodity SWFs, 2008 (Index 0-1)......Page 338
 Sovereign wealth fund acquisitions: a comparative analysis with mutual funds......Page 347
  Introduction......Page 348
  Definition and types of sovereign wealth funds......Page 349
  The growth of SWFs......Page 352
   Firm Size......Page 354
   Liquidity......Page 355
   Operating Performance......Page 356
   Stock Price......Page 357
   Dividend Yield......Page 358
   The Level of Investor Protection in the Country......Page 359
   The Level of the Financial Development of the Host Country......Page 360
   Religious and Cultural Factors......Page 361
   Firm Visibility......Page 362
  Sample and descriptive statistics......Page 363
   Descriptive Statistics of the Sample......Page 364
   Description of Variables......Page 367
  Univariate analysis......Page 370
  Conclusion......Page 373
  References......Page 374