The risk tolerance of international investors
By: Kenneth A. Froot and Paul G.J. O'Connell
Contributors: O'Connell, Paul G. J. (Paul Gerard Jude); Harvard Business School. Division of Research
Series: Working paper / Division of Research, Harvard Business School -- 04-034; Working paper (Harvard Business School. Division of Research) -- 04-034
Publisher: Division of Research, Harvard Business School
Published: 2003
Place of publication: Boston
Language: eng
Number of pages: 21
Subjects: Risk management; Foreign Investments
Description: Investor confidence and risk tolerance are important concepts that investors are constantly trying to gauge. Yet these concepts are notoriously hard to measure in practice. Most attempts rely on price or return data, but these run into trouble when trying to disentangle whether an observed price change is attributable to a shift in investor confidence or a change in fundamental value. In this paper, we take an alternative approach by looking at the world-wide holdings and trading of risky assets. We model global capital markets as the interaction between large global institutional investors and smaller domestic investors from each country.
Notes: "This version: September 18, 2003"--Added t.p.

Includes bibliographical references.