Description: Does Foreign Portfolio Investment Reach Small Listed Firms?

Does Foreign Portfolio Investment Reach Small Listed Firms?

Using a unique dataset, the author examines the impact of foreign portfolio investment on the capital issuance behavior of small listed firms. The author finds that foreign portfolio investment is associated with an increased probability of small f...

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Bibliographic Details
Main Author:	Knill, April M.
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ACCESS TO BANK ACCESS TO CAPITAL ACCESS TO FINANCE ACCESS TO FINANCING ACCOUNTING AGGREGATE DEMAND ALLOCATION OF CAPITAL AMOUNT OF CAPITAL AMOUNT OF CREDIT AMOUNT OF DEBT ASSET VALUES BALANCE OF PAYMENTS BALANCE SHEET BALANCE SHEETS BANK BALANCE SHEETS BANK CREDIT BANK DEBT BANK LENDING BANK LOANS BANK POLICY BANK REGULATION BANKING CRISES BANKING SECTOR BANKRUPTCY BENEFICIARY BIASES BOOK VALUE BRIBES BUSINESS CYCLE CAPITAL ALLOCATION CAPITAL CONSTRAINTS CAPITAL FLOW CAPITAL FLOWS CAPITAL GROWTH CAPITAL INFLOWS CAPITAL INVESTMENTS CAPITAL MARKET CAPITAL MARKET LIBERALIZATION CAPITAL MARKETS CAPITAL RAISING CAPITAL STRUCTURE CAPITAL STRUCTURES CASH FLOW CASH FLOWS CASH INFLOWS COLLATERAL COMMON STOCK CONSUMPTION EXPENDITURE CORPORATE DEBT CORPORATE FINANCE CORPORATE TAX RATES CORRUPTION COUNTRY DEBT COUNTRY RISK CREDIT AVAILABILITY CREDIT CRUNCH CURRENCY DEBT DEBT CAPITAL DEBT ISSUANCE DEBT ISSUANCES DEBT ISSUES DEBT LEVELS DEBT MATURITY DEBT SECURITIES DEPOSITORY DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DOMESTIC BANKS DOMESTIC CAPITAL DOMESTIC CAPITAL MARKET DOMESTIC CREDIT DOMESTIC MARKET DOMESTIC MARKETS DUMMY VARIABLE EARNINGS ECONOMIC ACTIVITY EMERGING ECONOMIES EMERGING MARKET EMERGING MARKET EQUITY EMERGING MARKETS EQUITY INVESTMENT EQUITY INVESTMENTS EQUITY ISSUANCES EQUITY ISSUES EQUITY MARKET EQUITY MARKETS EQUITY OFFERINGS EQUITY SECURITIES EXCHANGE CONTROLS EXCHANGE RATES EXCLUSION EXTERNAL FINANCE EXTERNAL FINANCING EXTERNAL FUNDS EXTERNALITIES FINANCIAL DEVELOPMENT FINANCIAL DISTRESS FINANCIAL INFORMATION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL LIBERALIZATION FINANCIAL MANAGEMENT FINANCIAL MARKETS FINANCIAL NEED FINANCIAL SERVICES FINANCIAL STUDIES FINANCIAL SYSTEMS FINANCING NEEDS FINANCING OBSTACLES FISCAL BURDEN FIXED ASSETS FOREIGN CAPITAL FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN EXCHANGES FOREIGN INVESTMENT FOREIGN INVESTORS FOREIGN OWNERS FOREIGN PORTFOLIO FOREIGN PORTFOLIO INVESTMENT FORMS OF DEBT GDP GLOBAL CAPITAL GOVERNMENT EXPENDITURES GROSS DOMESTIC PRODUCT GROWTH RATE HOLDINGS ILLIQUIDITY INCOME TAX INFLATION INFORMATION ASYMMETRY INSTITUTIONAL INVESTORS INTEREST RATES INTERNAL FINANCING INTERNATIONAL CAPITAL INTERNATIONAL DIVERSIFICATION INTERNATIONAL FINANCE INVESTING INVESTMENT CAPITAL INVESTMENT POLICY INVESTMENT RISK INVESTOR DEMAND INVESTOR PROTECTION ISSUANCE LACK OF TRANSPARENCY LEGAL SYSTEM LENDING PRACTICES LEVEL OF DEBT LEVEL OF RISK LEVY LIQUIDATION LOAN LOAN FUNDS LONG-TERM DEBT MACROECONOMIC CONDITIONS MACROECONOMIC CONTROL MACROECONOMIC DATA MACROECONOMIC VARIABLES MARGINAL COEFFICIENTS MARKET CAPITALIZATION MARKET FINANCE MARKET INTEGRATION MARKET VALUE MARKETABLE SECURITIES MATURITY MATURITY OF LOANS MATURITY STRUCTURE MONETARY FUND MONETARY POLICY MONEY SUPPLY MULTINATIONAL MUTUAL FUNDS OPEN FINANCIAL MARKETS ORGANIZATIONAL FORM OUTSTANDING DEBT PERSONAL PROPERTY PORTFOLIO PORTFOLIO CAPITAL PORTFOLIO INFLOWS PORTFOLIOS POSITIVE EXTERNALITIES PRIVATE CAPITAL PRIVATE PLACEMENT PROFITABILITY PROFITABILITY RATIO PROPERTY RIGHTS PROPERTY RIGHTS PROTECTION PUBLIC DEBT PUBLIC MARKETS PUBLIC POLICY REAL EXCHANGE RATE REAL INTEREST REAL INTEREST RATE REAL INTEREST RATES RECEIPT RECEIPTS RESERVES RETURN RETURN ON ASSETS RETURNS RETURNS TO SCALE SAVINGS SECURITIES SECURITIES LAWS SHAREHOLDERS SHORT-TERM DEBT SMALL BANKS SOURCES OF FUNDS STOCK EXCHANGE STOCK MARKET SUBSTITUTION EFFECT TANGIBLE ASSETS TAX TAX BURDEN TAX RATES TAXATION TOTAL DEBT TRADE CREDIT VALUE OF ASSETS WEALTH WEALTH EFFECTS WORLD FINANCIAL MARKETS YANKEE BONDS
Online Access:	http://documents.worldbank.org/curated/en/2008/08/9739006/foreign-portfolio-investment-reach-small-listed-firms http://hdl.handle.net/10986/6815

Description
Summary:	Using a unique dataset, the author examines the impact of foreign portfolio investment on the capital issuance behavior of small listed firms. The author finds that foreign portfolio investment is associated with an increased probability of small firm security issuance in all nations, regardless of property rights development. Evidence suggests the mechanism by which this occurs is a freeing up of capital in domestic markets when large firms utilize the foreign investment directly. Debt levels in nations where property rights are more developed increase, suggesting that foreign portfolio investment may reach small firms through the banking channel as well as capital markets in these nations.

Does Foreign Portfolio Investment Reach Small Listed Firms?

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