Institutional conditions, economic policy uncertainty and foreign institutional investment in China

被引：24

作者：

He, Lerong ^{[1
,2
]}

Huang, Liying ^{[1
]}

Fang, Liting ^{[1
]}

机构：

[1] Fuzhou Univ, Sch Econ & Management, Fuzhou 350116, Fujian, Peoples R China

[2] State Univ New York Coll Brockport, Sch Business & Management, Brockport, NY 14420 USA

来源：

EMERGING MARKETS REVIEW | 2022年 / 50卷

基金：

中国国家自然科学基金;

关键词：

Foreign institutional investors; Institutional conditions; Economic policy uncertainty; International finance; QFII; China; CORPORATE GOVERNANCE; STOCK-MARKET; LARGE SHAREHOLDERS; INVESTORS; DISTANCE; RISK; PERFORMANCE; BIAS;

D O I：

10.1016/j.ememar.2021.100823

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

This paper investigates the influence of host and home country institutional conditions on foreign institutional investment. Utilizing longitudinal and multilevel data on foreign institutional investment in Chinese listed firms between 2004 and 2017, we document that foreign institutional investment decreases with increasing economic policy uncertainty in the host nation. We also find that foreign institutional investors respond more strongly to local economic policy uncertainty when their home nations are closer to China, are culturally and administratively similar to China, operate a smaller domestic stock market, and have weaker minority shareholder protection. The impact of economic policy uncertainty on foreign institutional investment is also stronger when the host nation institution is more developed and open.. Moreover, we reveal the mediating role of stock market volatility on this relationship. Overall, we document that foreign institutional investment is not only shaped by institutional conditions in the host country but also influenced by home country characteristics that define geographical and institutional distance between home and host nations.

引用

页数：22

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