International equity portfolio investment and enforcement of insider trading laws: a cross-country analysis

Date

2018-08-17

Advisors

Journal Title

Journal ISSN

ISSN

Volume Title

Publisher

Springer

Type

Article

Peer reviewed

Yes

Abstract

In this study, we examine the effects of stringent insider trading laws’ enforcement, institutions and stock market development on international equity portfolio allocation using data from 44 countries over the period 2001-2015. Our results suggest that stringent insider trading laws and their enforcement exert a positive and significant impact on international portfolio investment allocation. Further analysis indicates that the interaction between a country’s institutional quality, stock market development and enforcement of insider trading laws have a positive and significant effect on international equity portfolio allocation. The findings of this study have implications for the design of portfolio investment trading strategies and contribute to the literature on foreign equity investment decisions.

Description

The file attached to this record is the author's final peer reviewed version. The Publisher's final version can be found by following the DOI link.

Keywords

Insider trading laws, Institutional quality, Stock market development, Foreign equity portfolio flows

Citation

Kwabi, F., Boateng, A. and Adegbite, E. (2018) International equity portfolio investment and enforcement of insider trading laws: a cross-country analysis. Review of Quantitative Finance and Accounting, 53 (2), pp. 327-349

Rights

Research Institute

Finance and Banking Research Group (FiBRe)