TITLE:
FII Ownership in Indian Equity Securities: The Firm-Level Determinants
AUTHORS:
B. Hariprasad
KEYWORDS:
Foreign Ownership, Firm Attributes, International Portfolio Selection, Emerging Markets
JOURNAL NAME:
Theoretical Economics Letters,
Vol.6 No.5,
September
19,
2016
ABSTRACT: This paper studies the stock ownership in Indian
firms by Foreign Institutional Investors during 2013 to 2015. Several
firm-level characteristics are used to measure the extent to which information
asymmetry affects the level of FII ownership in these firms. The analysis
reveals that the firm-size and the book-to-market ratio are significant
variables in selecting the equity investments by this investor group. There is
not much empirical support for beta or the export ratio as determinants of
firm-level ownership. In their holdings of
large-firm stocks, there is a strong evidence that FIIs prefer to hold more
shares of high exports firms.