The liability of foreignness in international equity investments : evidence from the US stock market

• Main Authors: Baik, Bok, Kang, Jun-Koo, Kim, Jin-Mo, Lee, Joonho
• Other Authors: Nanyang Business School
• Format: Article
• Language: English
• Published: 2013
• Subjects: DRNTU::Business::International business
• Online Access: https://hdl.handle.net/10356/99303; http://hdl.handle.net/10220/17408
• Institution: Nanyang Technological University

Using foreign institutional ownership data in the US from 1990 to 2007, we examine whether foreign institutional investors face liabilities of foreignness (LOF) in the US stock market. We find that foreign institutional investors prefer low information asymmetry stocks more than domestic institution...