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 263
- Downloads 0
Trust within Brazilian New Economy Organizations: an Empirical Investigation of Gender Effects Benchmarked on Brazilian Old Economy Organizations
It has been suggested that one of the negative aspects of the New Economy has been growing organizational survival-risk both at the firm and the sector levels. This precarious positioning of the firm has profoundly cha...
Thresholds are everywhere: A systems approach to public policy
The analysis of public policies often fails to account for effects beyond mere cost-benefit analysis. Incorporating elements from the literature on system dynamics, complexity and legitimacy, the present paper develops a...
The Smart Cities MethodoLogy based on public value: The first evaluation cycle
Several smart cities initiativesare currently underway around the world, and thistrend is expected to grow in the coming years. Such initiatives should bedesigned according to the needs and conditionsof each...
Pre-adoption diagnosis of the intelligence process in organizations: A Delphi study with intelligence practitioners
In turbulent and competitive scenarios, strategic intelligence is a crucial process for organizations to reduce uncertainties during decision-making and to anticipate changes that may affect their performance and sustain...
Organizational Sacralization and Discursive Use of Corporate Mission Statements
The religious origin of organizational behavior is not easy to recognize, nor are the implications of the Christian heritage of concepts and ideas as applied to organizations. This paper seeks to remedy this by investig...