IDEAS home Printed from https://ideas.repec.org/a/eee/pacfin/v89y2025ics0927538x2400341x.html
   My bibliography  Save this article

Does benchmark-driven investment amplify the impact of the global financial cycle on emerging markets?

Author

Listed:
  • Chen, Yang
  • Feng, Yun
  • Liu, Qing
  • Zhang, Zhipeng

Abstract

This paper examines how the benchmark indexes affect the sensitivity of emerging markets cross-border fund flows to the global financial cycle. We find that benchmark-driven fund flows are more sensitive to the global financial cycle than non-benchmark-driven flows. The higher the penetration of benchmark-driven funds, the more fund flows are affected by global and domestic factors. Capital flow management policies can effectively dampen the impact of the global financial cycle on capital flows when the global financial cycle is at a low level.

Suggested Citation

  • Chen, Yang & Feng, Yun & Liu, Qing & Zhang, Zhipeng, 2025. "Does benchmark-driven investment amplify the impact of the global financial cycle on emerging markets?," Pacific-Basin Finance Journal, Elsevier, vol. 89(C).
    • Handle: RePEc:eee:pacfin:v:89:y:2025:i:c:s0927538x2400341x
    DOI: 10.1016/j.pacfin.2024.102589
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0927538X2400341X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.pacfin.2024.102589?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Benchmark indexes; Fund flows; Global financial cycle; Emerging markets;
    All these keywords.

    JEL classification:

    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:pacfin:v:89:y:2025:i:c:s0927538x2400341x. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/pacfin .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.