Full metadata record
DC Field | Value | Language |
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dc.contributor.author | Baker, Malcolm | - |
dc.contributor.author | Foley, C. Fritz | - |
dc.contributor.author | Wurgler, Jeffrey | - |
dc.date.accessioned | 2008-05-27T14:34:20Z | - |
dc.date.available | 2008-05-27T14:34:20Z | - |
dc.date.issued | 2004-12-22 | - |
dc.identifier.uri | http://hdl.handle.net/2451/26651 | - |
dc.description.abstract | We outline and test two theories of foreign direct investment based on capital market mispricing. The “cheap assets” or “fire-sale” theory considers FDI inflows as the purchase of undervalued host country assets, while the “cheap financial capital” theory views FDI outflows as a natural use of the relatively low-cost capital available to overvalued firms in the source country. The results are consistent with the cheap financial capital theory: FDI flows are unrelated to host country stock market valuations, as measured by the aggregate market-to-book-value ratio, but are strongly positively related to source country valuations and negatively related to future source country stock returns, especially when capital account restrictions limit cross-country arbitrage. | en |
dc.language.iso | en_US | en |
dc.relation.ispartofseries | SC-AM-04-05 | en |
dc.title | STOCK MARKET VALUATIONS AND FOREIGN DIRECT INVESTMENT | en |
dc.type | Working Paper | en |
Appears in Collections: | Asset Management |
Files in This Item:
File | Description | Size | Format | |
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S-AM-04-05.pdf | 168.77 kB | Adobe PDF | View/Open |
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