Author(s)

B. Hariprasad

Finance & Accounting Area, Indian Institute of Management, Indore, India.

This paper studies the stock ownership in Indian firms by Foreign Institutional Investors during 2013 to 2015. Several firm-level characteristics are used to measure the extent to which information asymmetry affects the level of FII ownership in these firms. The analysis reveals that the firm-size and the book-to-market ratio are significant variables in selecting the equity investments by this investor group. There is not much empirical support for beta or the export ratio as determinants of firm-level ownership. In their holdings of large-firm stocks, there is a strong evidence that FIIs prefer to hold more shares of high exports firms.

Foreign Ownership, Firm Attributes, International Portfolio Selection, Emerging Markets

Hariprasad, B. (2016) FII Ownership in Indian Equity Securities: The Firm-Level Determinants. Theoretical Economics Letters, 6, 917-926. doi: 10.4236/tel.2016.65095.