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Is it worth limiting the ownership and investment of foreign companies? (Stock market case)
https://doi.org/10.32609/0042-8736-2023-3-40-62
Abstract
To identify possible equity market implications of restrictions on foreign ownership and investment in Russia; as well as against Russian ownership abroad; we reviewed data from 38 countries and applied fixed effects models to panel data. We show that restrictive measures against foreign ownership and investment will have a negative impact on the capitalization of the domestic stock market. The effect will be amplified under the influence of such factors as corruption; freedom of investment; financial; trade and business freedoms. The quality of the judiciary is most important when examining the share of the domestic stock market in the world stock market. Tax incentives and increased fiscal freedom will not be able to have a positive impact in the face of restrictive measures against foreign ownership and investment.
About the Author
A. N. Nepp
Ural Federal University named after the first President of Russia B. N. Yeltsin;
Ural Institute of Management; Russian Presidential Academy of National Economy and Public Administration
Russian Federation
Russian Federation
Alexander N. Nepp
Ekaterinburg
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Nepp A.N. Is it worth limiting the ownership and investment of foreign companies? (Stock market case). Voprosy Ekonomiki. 2023;(3):40-62. (In Russ.) https://doi.org/10.32609/0042-8736-2023-3-40-62
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