Corruption’s impact on foreign portfolio investment

• Published in: International business review Vol. 26; no. 1; pp. 23 - 35
• Main Authors: Jain, Pankaj K., Kuvvet, Emre, Pagano, Michael S.
• Format: Journal Article
• Language: English
• Published: Elsevier Ltd 01.02.2017
• Subjects: Corruption; Foreign portfolio investment; International financial markets; Trading; Trading; International financial markets; Foreign portfolio investment; Corruption; G19

•Corruption is associated with decreases in liquidity and foreign portfolio investment.•The effects of corruption on foreign investment are nonlinear and reverse J-shaped. Intermediate levels yield the most negative effects.•Highly transparent nations and very corrupt countries both attract more for...