The investment technology of foreign and domestic institutional investors in an emerging market
AbstractWe compare the investment technology of foreign versus domestic investors with a focus on decomposing outcomes attributable to asset allocation and security selection. We document significant differences in exposure to systematic asset pricing factors between foreign and domestic investors. A quasi-experimental strategy is introduced, for comparing security selection after controlling for differences in asset allocation. Our results show that foreign investors in India fare poorly at security selection, while domestic investors fare well.
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Bibliographic InfoPaper provided by National Institute of Public Finance and Policy in its series Working Papers with number 13/124.
Date of creation: Jun 2013
Date of revision:
Note: Working Paper 124, 2013
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Web page: http://www.nipfp.org.in
Other versions of this item:
- Ila Patnaik & Ajay Shah, 2013. "The Investment Technology of Foreign and Domestic Institutional Investors in an Emerging Market," IMF Working Papers 13/90, International Monetary Fund.
- NEP-ALL-2013-06-24 (All new papers)
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