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Please use this identifier to cite or link to this item: http://dspace.lib.cranfield.ac.uk/handle/1826/4719

Document Type: Article
Title: International equity portfolio allocations and transaction costs
Authors: Thapa, Chandra
Poshakwale, Sunil S.
Issue Date: 2010
Abstract: In spite of the critical role of transaction cost, there are not many papers that explicitly examine its influence on international equity portfolio allocation decisions. Using bilateral cross-country equity portfolio investment data and three direct measures of transaction costs for 36 countries, we provide evidence that markets where transaction costs are lower attract greater equity portfolio investments. The results imply that future research on international equity portfolio diversification cannot afford to ignore the role of transaction costs, and policy makers, especially in emerging markets, will have to reduce transaction costs to attract higher levels of foreign equity portfolio investments.
URI: http://dx.doi.org/10.1016/j.jbankfin.2010.05.004
http://dspace.lib.cranfield.ac.uk/handle/1826/4719
Appears in Collections:Staff publications - School of Management

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