Are daily cross-border equity flows pushed or pulled ? March 18 , 2003

@inproceedings{Griffin2003AreDC,
  title={Are daily cross-border equity flows pushed or pulled ? March 18 , 2003},
  author={John M. Griffin and Federico Nardari and Ren{\'e} M. Stulz},
  year={2003}
}
We investigate the conditions under which an equilibrium intertemporal model based on portfolio decisions of investors can explain the dynamics of high frequency equity flows. Our model shows that, when there are barriers to international investment and when the expectations of foreign investors are more extrapolative than those of domestic investors (either due to foreigners being less informed or to behavioral reasons), unexpectedly high worldwide or local stock returns lead to net equity… CONTINUE READING
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