The Foreign Capital Flows and the Behavior of Stock Prices at BM&FBovespa
Journal Title: BAR: Brazilian Administration Review - Year 2014, Vol 11, Issue 1
Abstract
The main purpose of this article is to investigate alternative explanations for the impact of foreign capital flows on Ibovespa returns, including: trend chasing, information contribution and mutual feedback. Daily data of the period between 2005 and 2012 are analyzed using simultaneous equation models which are estimated by ordinary least squares (OLS). Several exogenous market variables are included as determinants of returns and capital flows. The research results present that only the information contribution hypothesis is supported by the analysis. Besides, it also shows that the 2008 global financial crisis had no significant effect on the interaction of market returns with foreign capital flows.
Authors and Affiliations
Sanvicente, Antonio Zoratto
Keywords
Related Articles
- EP ID EP40570
- DOI -
- Views 258
- Downloads 0
Learning Curve? Which One?
Learning curves have been studied for a long time. These studies provided strong support to the hypothesis that, as organizations produce more of a product, unit costs of production decrease at a decreasing rate (see Ar...
Relationships and Partnerships in Small Companies: Strengthening the Business through External Agents
This article aims to understand the relationships between small companies and external innovation agents and how they can help strengthening these organisations. A multiple case research method was adopted by the resea...
The Motivation to Participate in Citizen-Sourcing and Hackathons in the Public Sector
Key challenges of how citizens can be motivated to participate in citizen-sourcing initiatives remain unaddressed. In this paper, we identified the influence of eight motivation variables in the number of participations...
The World Financial Crisis and the International Financing of Brazilian Companies
The world financial crisis initiated in 2008 may have affected the international financing mix of firms in Brazil and their determinants, given its aftereffects. Financial crisis are recurrent events with varying degree...
Who are the relevant stakeholders to the local government context? Empirical evidences on environmental influences in the decision-making process of English Local Authorities
This article presents empirical evidence of stakeholding in the local government context. It is the result of a survey carried out with English Local Authorities in 2001. It outlines the arena in which local government m...