Advanced Search
MyIDEAS: Login

Mutual fund managers stock preferences in Latin America

Contents:

Author Info

  • Piccioni, Joao Luiz
  • Sheng, Hsia Hua
  • Lora, Mayra Ivanoff
Registered author(s):

    Abstract

    In this paper, we observe the preferential characteristics of mutual fund managers when investing in Latin America. The main objective was checking the hypothesis that foreign managers prefer companies with characteristics that amplify its visibility, in other words, that reduce information asymmetry, a possible explanation for the existence of home bias. For this purpose, we observe mutual fund positions based on shareholders list of the companies listed at the stock exchanges of the countries of the sample in three different periods (June 2008, 2009 and 2010). Our findings go along with the hypothesis of home bias. Relevant variables of this literature that reinforces international exposure – i.e. international listing (ADRs), analyst coverage and exporting – were significant. Additionally, our findings suggest that international listing (ADRs) plays an important role in foreign mutual fund managers' decisions for Latin America, most due its characteristics (i.e. liquidity and market size). The study also revealed the preferences of domestic fund managers located in Latin America and found evidence that these managers behave differently from foreign mutual fund managers, as they expand their selection towards a market portfolio and do not focus on stocks with visibility characteristics.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.sciencedirect.com/science/article/pii/S1057521912000671
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by Elsevier in its journal International Review of Financial Analysis.

    Volume (Year): 24 (2012)
    Issue (Month): C ()
    Pages: 38-47

    as in new window
    Handle: RePEc:eee:finana:v:24:y:2012:i:c:p:38-47

    Contact details of provider:
    Web page: http://www.elsevier.com/locate/inca/620166

    Related research

    Keywords: Fund managers; Latin America; Investments; Home bias; ADR;

    Find related papers by JEL classification:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:eee:finana:v:24:y:2012:i:c:p:38-47. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.