Are Foreign Institutional Investors Good for Emerging Markets?

Research, Preprint English OPEN
Menkhoff, Lukas; Frenkel, Michael;
  • Publisher: Hannover: Universität Hannover, Wirtschaftswissenschaftliche Fakultät
  • Subject: Welt | Aufstrebende Märkte | F32 | Institutional Investors | Asymmetric Information | Portfolio-Investition | International Capital Flows | Internationale Kapitalmobilität | Asymmetrische Information | Finanzmarktkrise | O16 | Institutioneller Anleger | Portfolio Flows | Emerging Markets | Portfolio Flows, Institutional Investors, Emerging Markets, Asymmetric Information, International Capital Flows
    • jel: jel:F32 | jel:O16
      ddc: ddc:330

Portfolio flows channeled via institutional investors were the most dynamic capital flows to emerging markets in the 1990s. We use an asymmetric information framework to derive five propositions, to integrate empirical evidence and to suggest policy implications. Opaque... View more
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