Browsing by Author "Du, Anna"

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    Impact of central bank independence, transparency and institutional quality on foreign equity portfolio allocation: a cross-country analysis
    (Elsevier, 2020-02-27) Kwabi, Frank; Boateng, Agyenim; Du, Anna
    In this study, we analyse the effects of central bank independence (CBI) and central bank transparency (CBT) and their interactions with institutional quality on foreign equity portfolio inflows. Employing a dataset from 42 countries over the period from 2001-2014, we find strong evidence that independent and transparent central bank has a positive and significant influence on foreign equity investment inflows. Further analysis shows that institutional quality interacts with central bank independence and transparency in attracting foreign equity portfolio. Our results are robust to alternative specifications, endogeneity concerns and that economic policy uncertainty increases asymmetric information and deters foreign equity portfolio investment inflows.
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    Political Uncertainty and Cross-Border Equity Portfolio Allocation Decisions: International Evidence
    (Elsevier, 2023-02-04) Kwabi, Frank; Boateng, Agyenim; Chizindu, Wonu; Kariuki, Charles; Du, Anna
    Political risk models highlight that political uncertainty matters for corporate investment decisions. However, how political uncertainty matters for investment allocation decisions is relatively under-explored. In this study, we examine the impact of political uncertainty associated with national elections on foreign equity portfolio in 48 countries. Our results indicate that political uncertainty reduces international equity allocations to the host country and such reduction appears more pronounced in the election year. Further analysis shows that the interaction between political uncertainty and institutional quality has a positive and significant effect on international equity portfolio flow, suggesting that the value of institutional quality outweighs the negative effects of political uncertainty. Lastly, we find equity home bias to be negative and significant; however, the interaction between political uncertainty and equity home bias appears insignificant.