Work

Stock returns and foreign investment in Brazil

Year: 2010

Type: article

Abstract: We examine the relationship between stock returns and foreign investment in Brazil, and find that the inflows of foreign investment boosted the returns from 1995 to 2005. There was a strong contemporaneous correlation, although not Granger causality. Foreign investment along with the exchange rate, the influence of the world stock markets and country risk can explain 73% of the changes that occurred in the stock returns over the period. We also find that positive feedback trading played a role, and that the market promptly assimilated new information.

Source: Applied Financial Economics

DOI: 10.1080/09603107.2010.498342

Authors: Luciana Reis, Roberto Meurer, Sergio Da Silva

Institution: Universidade Federal de Santa Catarina

Language: English

Topic: Financial Markets and Investment Strategies

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: green

Funders: Coordenação de Aperfeiçoamento de Pessoal de Nível Superior, Conselho Nacional de Desenvolvimento Científico e Tecnológico

OpenAlex ID: W1500018023