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Foreign institutional investment horizon and investment efficiency in emerging markets

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  • Mian, Rehman U.
  • Mian, Affan

Abstract

This paper examines whether foreign institutional investors’ investment horizon affects investment efficiency across 17 emerging markets. We find that long-term foreign institutional investors are associated with an enhancement in investment efficiency, particularly in firms susceptible to overinvestment and agency problems.

Suggested Citation

  • Mian, Rehman U. & Mian, Affan, 2023. "Foreign institutional investment horizon and investment efficiency in emerging markets," Economics Letters, Elsevier, vol. 232(C).
    • Handle: RePEc:eee:ecolet:v:232:y:2023:i:c:s0165176523003658
    DOI: 10.1016/j.econlet.2023.111340
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    References listed on IDEAS

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    More about this item

    Keywords

    Foreign institutional investors; Investment horizon; Investment efficiency; Emerging markets;
    All these keywords.

    JEL classification:

    • G00 - Financial Economics - - General - - - General
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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