Reassessing the role of distance on cross-border equity flows: does distance still matter?.

• Main Author: Pandej Chintrakarn
• Other Authors: Mahidol University International College. Business Administration Division
• Format: Article
• Language: English
• Published: 2015
• Subjects: Equity flows; Cross-border portfolio investment; Information asymmetries; Gravity model; Home bias
• Online Access: https://repository.li.mahidol.ac.th/handle/123456789/47995
• Institution: Mahidol University

Portes and Rey (2005) employ a gravity model to analyze bilateral crossborder equity flows and find that increase in the distance of 1% lowers bilateral crossborder equity flows between 0.66% and 0.88%. Applying the Poisson pseudomaximum likelihood (PPML) estimators reveals that although distance w...