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

Kwabi, Frank O. and Boateng, Agyenim and Adegbite, Emmanuel (2018) International equity portfolio investment and enforcement of insider trading laws: a cross-country analysis. Review of Quantitative Finance and Accounting . ISSN 1573-7179

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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.

Item Type: Article
Additional Information: This is a post-peer-review, pre-copyedit version of an article published in Review of Quantitative Finance and Accounting. The final authenticated version is available online at: http://dx.doi.org/10.1007/s11156-018-0751-4
Keywords: Insider trading laws; Institutional quality; Stock market development; Foreign equity portfolio flows
Schools/Departments: University of Nottingham, UK > Faculty of Social Sciences > Nottingham University Business School
Identification Number: https://doi.org/10.1007/s11156-018-0751-4
Depositing User: Eprints, Support
Date Deposited: 21 Sep 2018 08:55
Last Modified: 17 Aug 2019 04:30
URI: http://eprints.nottingham.ac.uk/id/eprint/55074

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