Stock returns and foreign investment in Brazil

  • Reis L
  • Meurer R
  • da Silva S
  • 7

    Readers

    Mendeley users who have this article in their library.
  • 8

    Citations

    Citations of this article.

Abstract

We examine the relationship between stock returns and foreign investment in Brazil, and find that the inflows of foreign investment boosted the returns from 1995 to 2005. There was a strong contemporaneous correlation, although not Granger causality. Foreign investment along with the exchange rate, the influence of the world stock markets and country risk can explain 73% of the changes that occurred in the stock returns over the period. We also find that positive feedback trading played a role, and that the market promptly assimilated new information. © 2010 Taylor & Francis.

Get free article suggestions today

Mendeley saves you time finding and organizing research

Sign up here
Already have an account ?Sign in

Find this document

Authors

  • Luciana Reis

  • Roberto Meurer

  • Sergio da Silva

Cite this document

Choose a citation style from the tabs below

Save time finding and organizing research with Mendeley

Sign up for free