Market liberalization and foreign equity portfolio selection in Korea
AbstractThis study reports that before and after the complete opening of the Korean stock market, foreign equity portfolio selections deviate not only from the market portfolio but also from the portfolio held by domestic institutions. The divergence between foreign investors and domestic institutions is a finding different from that of a previous study on the Swedish market. This study also presents evidence consistent with the view that in the post-crisis deregulation period, foreign investors are most likely fundamental value investors with long-term investment horizons and well diversified portfolios, rather than short-term speculative stock-pickers.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Multinational Financial Management.
Volume (Year): 19 (2009)
Issue (Month): 3 (July)
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Web page: http://www.elsevier.com/locate/mulfin
Foreign investors Market liberalization Portfolio selection;
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