Mutual fund preferences for Latin American equities surrounding financial crises

Elkinawy, Susan

doi:10.1016/j.ememar.2005.05.001

Cited by 11 publications

(11 citation statements)

References 35 publications

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“…The level of leverage is included as a proxy for the risk level of a firm (LEV), which is measured, by the debt-to-assets ratio (Chung and Zhang, 2011). Elkinawy (2005) mentions that fund managers prefer firms with low leverage.…”

Section: Control Variablesmentioning

confidence: 99%

“…Their study showed that companies with a more concentrated management ownership structure displayed better capital market performance during that period. Moreover, Elkinawy (2005), focusing on an emerging country during the financial crisis of the late 1990s, showed that liquidity, trade links, and CG were considered important determinants for mutual fund portfolio choices during the crisis. These results seem to imply that companies with good CG quality performed better during times of crisis, and that investors considered CG to be a major concern in their investment decisions.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

“…These results seem to imply that companies with good CG quality performed better during times of crisis, and that investors considered CG to be a major concern in their investment decisions. Contrary to the previous study by Elkinawy (2005) that focused on emerging markets, this study examines the preferences of major shareholders in a developed country such as the United Kingdom during the 2007-2008 financial crisis period. It is expected that major shareholders consider the effect of CG on wealth and risk of their shareholdings differently in crisis versus non-crisis periods.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

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How Corporate Governance Affects Investment Decisions of Major Shareholders in UK Listed Companies

Hawas

Tse

2015

Journal of Accounting, Auditing & Finance

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We develop corporate governance index based on the requirements of the combined code in order to examine the effect of corporate governance (CG) on major shareholdings of listed non-financial firms in the UK from 2005 to 2009. We also investigate whether this relationship has changed during the recent financial crisis. In particular, we test the effect of both the level and changes in CG on both the level and changes in total and alternative types of major shareholdings. The results from panel data regressions show that, for the whole studied period, there is a significant positive relationship between CG and total major shareholdings. However, there is no evidence to suggest that changes in CG affect changes in major shareholdings. We also find that 'board composition and independence' is the only CG sub-index that affects total major shareholdings. Interestingly, we find that different sub-indices of CG appear to affect different types of major shareholdings. Our results also provide evidence that the relationship between CG and major shareholdings changes from insignificant before the financial crisis to significant during the financial crisis, suggesting that major shareholders believe CG was particularly important during times of financial trouble. AbstractWe develop corporate governance index based on the requirements of the combined code in order to examine the effect of corporate governance (CG) on major shareholdings of listed non-financial firms in the UK from 2005 to 2009. We also investigate whether this relationship has changed during the recent financial crisis. In particular, we test the effect of both the level and changes in CG on both the level and changes in total and alternative types of major shareholdings. The results from panel data regressions show that, for the whole studied period, there is a significant positive relationship between CG and total major shareholdings. However, there is no evidence to suggest that changes in CG affect changes in major shareholdings. We also find that 'board composition and independence' is the only CG sub-index that affects total major shareholdings. Interestingly, we find that different subindices of CG appear to affect different types of major shareholdings. Our results also provide evidence that the relationship between CG and major shareholdings changes from insignificant before the financial crisis to significant during the financial crisis, suggesting that major shareholders believe CG was particularly important during times of financial trouble.

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Section: Control Variablesmentioning

confidence: 99%

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

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How Corporate Governance Affects Investment Decisions of Major Shareholders in UK Listed Companies

Hawas

Tse

2015

Journal of Accounting, Auditing & Finance

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“…Existem vários estudos sobre o comportamento dos investidores durante as crises cambiais. Para a América Latina, por exemplo, Elkinawy (2005) associou as escolhas de fundos de investimento dos Estados Unidos a características de empresas e de comércio dos países, sendo preferidos empresas e países menos vulneráveis a alterações na sua competitividade internacional ou dos seus concorrentes.…”

Section: Revisão Da Literaturaunclassified

Fluxo de Capital Estrangeiro e Desempenho do Ibovespa

Meurer

2006

Braz. Rev. Fin.

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In this paper it is discussed and empirically tested the influence of foreign investors flow of resources on the Ibovespa index of the Sao Paulo Stock Exchange from January 1995 to july 2005. Other important variables are considered in the test, including a stock index of the United States, internal and external interest rates, the markets liquidity, exchange rate and country risk. The foreign influence is measured by the difference between the purchases and sells of foreign investors in the market of their participation in the Brazlian market capitalization. The effect of the inflow of resources was not detected straightly, but through an increase of the liquidity, what is compatible with the hypothesis that the foreign investors represent an increase of the base of stockholders of the domestic companies. The inflow of resources, on the other hand, anticipates the behavior of index. Country risk, exchange rate and liquidity of the market were important to explain variations of the Ibovespa.

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“…the companies with different characteristics. In his paper, Elkinawy (2005) examined the influence of company characteristics, such as the financial condition, competition and management, on the stock portfolio of the Latin American investment funds, during the Asian-Russian financial crisis. The research showed that the investment funds preferred cross-listed companies, and they avoided companies which had main Russian exporters as the competition.…”

Section: Related Workmentioning

confidence: 99%

Analysis of investors’ preferences in the Montenegro stock market using data mining techniques

Kašćelan

Jovanovic

2014

Economic Research-Ekonomska Istraživanja

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This article analyses the preferences of different types of investors to stock characteristics in the Montenegrin stock market. The majority of papers deal with stock portfolio analysis of the institutional investors. Since the number of individual investors in the Montenegrin market is much higher, the analysis of their trading behaviour is also very significant. In this article, using data mining techniques, we tested trading behaviour with stocks for both types of investors. We prove that data mining techniques, such as logistic regression, clustering and decision trees, provide good results in this type of analysis. The analysis may be useful to the future investors, brokers and stock exchange.

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Mutual fund preferences for Latin American equities surrounding financial crises

Cited by 11 publications

References 35 publications

How Corporate Governance Affects Investment Decisions of Major Shareholders in UK Listed Companies

How Corporate Governance Affects Investment Decisions of Major Shareholders in UK Listed Companies

Fluxo de Capital Estrangeiro e Desempenho do Ibovespa

Analysis of investors’ preferences in the Montenegro stock market using data mining techniques

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