Foreign Aid as a Signal to Investors

Does foreign aid really attract foreign investors? New evidence from panel cointegration

Why Should Foreign Investors Choose Pakistan as Their Destination ?

Global economy in the future is going to be a market place in which more than 180 countries of the World will be vying with each other for capturing, maintaining and enhancing their share in the trade and investment. Like national markets where individual firms compete with each other, individual countries will have to compete with each other in the global market. Thus, each country has to demo...

Foreign Aid, Incentives and Efficiency: Can Foreign Aid Lead to Efficient Level of Investment?

This paper develops a two-period-two-country model in which an altruistic donor faces Samaritan’s Dilemma to address two important policy questions: (i) whether foreign aid can lead to efficient level of capital investment in the recipient country and (ii) how do the form (e.g. budgetary transfers, capital transfer) and the timing of aid affect the incentives of the recipient? It finds that the...

How Local and Foreign Investors React to Public News

This study uses the segmented dual-class shares of Chinese firms---A shares traded inside mainland China by local investors and H shares traded in Hong Kong by foreign investors---to analyze how local and foreign investors react to public news about the same firms. We find significant heterogeneity in their reactions. First, foreign investors react more strongly to earnings announcements. Secon...

Should U.S. Investors Hold Foreign Stocks?

U.S. investors have traditionally been reluctant to acquire foreign securities—in part, perhaps, because they fear that restrictions on trading in foreign markets will sharply limit any gains they might realize from diversifying their portfolios. An analysis of the effects of one type of restriction, short-sale constraints, on stock returns between 1976 and 1999 suggests that investing in emerg...