TY - BOOK ID - 84658662 TI - Foreign investors under stress : evidence from India AU - Patnaik, Ila. AU - Shah, Ajay. AU - Singh, Nirvikar. PY - 2013 SN - 1484336127 1484340345 1484363248 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Investments, Foreign KW - Investments KW - Exports and Imports KW - Finance: General KW - Foreign Exchange KW - Information and Market Efficiency KW - Event Studies KW - International Finance: Other KW - General Financial Markets: General (includes Measurement and Data) KW - International Investment KW - Long-term Capital Movements KW - Finance KW - Currency KW - Foreign exchange KW - International economics KW - Stock markets KW - Emerging and frontier financial markets KW - Foreign direct investment KW - Exchange rates KW - Capital controls KW - Financial markets KW - Balance of payments KW - Stock exchanges KW - Financial services industry KW - Capital movements KW - India UR - https://www.unicat.be/uniCat?func=search&query=sysid:84658662 AB - Emerging market policy makers have been concerned about the financial stability implications of financial globalization. These concerns are focused on behavior under stressed conditions. Do tail events in the home country trigger off extreme responses by foreign investors – are foreign investors `fair weather friends'? In this, is there asymmetry between the response of foreign investors to very good versus very bad days? Do foreign investors have a major impact on domestic markets through large inflows or outflows – are they ‘big fish in a small pond’? Do extreme events in world markets induce extreme behavior by foreign investors, thus making them vectors of crisis transmission? We propose a modified event study methodology focused on tail events, which yields evidence on these questions. The results, for India, do not suggest that financial globalization has induced instability on the equity market. ER -