Institutional Investment in Central and Eastern Europe: Investment Criteria of Western Portfolio Managers
ZEW Discussion Paper No. 99-37
25 Pages Posted: 7 Jun 2003
Date Written: October 1999
This study provides detailed evidence on the recent transitionstate of Central and Eastern European (CEE) countries. It draws on data froma survey conducted among portfolio managers ofWestern investment funds thereby making use of the knowledge of experts in CEE markets. The approach of the study is two-fold: First, criteria for portfolio investment and current barriers to higherinvestment in CEE countries are identified. Second, the CEE portfolio structure is explained making use of detailed grading data fromthe survey. The results suggest that a reduction in general andmacroeconomic risk tends to increase investment and that the potential of high returns and low risk from the setting of financialmarkets contributes to significantly higher investment in some countries.
Keywords: Corporate governance, Ownership structure
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