Investment choices of foreign and domestic institutional investors
نویسندگان
چکیده
This paper examines the preferences of foreign and dometic institutional investors in Indian stock markets. Foreign and domestic institutional investors both prefer larger, widely dispersed firms and do not chase returns. However, we find evidence of strong differences in the behaviour of foreign and domestic institutional investors. Foreign investors prefer to buy private, liquid, young and globally visible firms. In contrast, domesic investors prefer less liquid, older, highly leveraged firms with large fixed assets. JEL Codes: G1, G15.
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