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Market liberalization and foreign equity portfolio selection in Korea

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  • Kim, Jaemin
  • Yoo, Sean Sehyun
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    Abstract

    This 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 Info

    Article provided by Elsevier in its journal Journal of Multinational Financial Management.

    Volume (Year): 19 (2009)
    Issue (Month): 3 (July)
    Pages: 206-220

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    Handle: RePEc:eee:mulfin:v:19:y:2009:i:3:p:206-220

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    Web page: http://www.elsevier.com/locate/mulfin

    Related research

    Keywords: Foreign investors Market liberalization Portfolio selection;

    References

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    Cited by:
    1. Mansourfar, Gholamreza & Mohamad, Shamsher & Hassan, Taufiq, 2010. "The behavior of MENA oil and non-oil producing countries in international portfolio optimization," The Quarterly Review of Economics and Finance, Elsevier, vol. 50(4), pages 415-423, November.

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