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Transparency and International Portfolio Holdings
Author(s) -
GELOS R. GASTON,
WEI SHANGJIN
Publication year - 2005
Publication title -
the journal of finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 18.151
H-Index - 299
eISSN - 1540-6261
pISSN - 0022-1082
DOI - 10.1111/j.1540-6261.2005.00823.x
Subject(s) - transparency (behavior) , microdata (statistics) , portfolio , business , emerging markets , monetary economics , foreign portfolio investment , accounting , portfolio investment , financial system , finance , economics , return on investment , microeconomics , open ended investment company , population , demography , production (economics) , sociology , political science , law , census
Does country transparency affect international portfolio investment? We examine this question by constructing new measures of transparency and by making use of a unique microdata set on portfolio holdings of emerging market funds around the world. We distinguish between government and corporate transparency. There is clear evidence that funds systematically invest less in less transparent countries. Moreover, funds have a greater propensity to exit nontransparent countries during crises.