Publication: Does Foreign Portfolio Investment Reach Small Listed Firms?
Date
2008-08
ISSN
Published
2008-08
Author(s)
Knill, April M.
Abstract
Using a unique dataset, the author
examines the impact of foreign portfolio investment on the
capital issuance behavior of small listed firms. The author
finds that foreign portfolio investment is associated with
an increased probability of small firm security issuance in
all nations, regardless of property rights development.
Evidence suggests the mechanism by which this occurs is a
freeing up of capital in domestic markets when large firms
utilize the foreign investment directly. Debt levels in
nations where property rights are more developed increase,
suggesting that foreign portfolio investment may reach small
firms through the banking channel as well as capital markets
in these nations.
Citation
“Knill, April M.. 2008. Does Foreign Portfolio Investment Reach Small Listed Firms?. Policy Research Working Paper No. 3796. © World Bank, Washington, DC. http://openknowledge.worldbank.org/entities/publication/865176e3-9371-57f3-80d9-167e56173fcb License: CC BY 3.0 IGO.”
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