The Foreign Capital Flows and the Behavior of Stock Prices at BM&FBovespa



Document title: The Foreign Capital Flows and the Behavior of Stock Prices at BM&FBovespa
Journal: BAR - Brazilian Administration Review
Database: CLASE
System number: 000414654
ISSN: 1807-7692
Authors: 1
Institutions: 1Insper Instituto de Ensino e Pesquisa, Sao Paulo. Brasil
Year:
Season: Ene-Mar
Volumen: 11
Number: 1
Pages: 86-106
Country: Brasil
Language: Inglés
Document type: Revisión bibliográfica
Approach: Histórico, descriptivo
English 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). S everal 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
Disciplines: Economía
Keyword: Precios,
Bolsa de Valores de Sao Paulo,
Flujos de capital,
Mercado de valores,
Crisis económica,
Econometría,
Brasil
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