Political ideology and international capital allocation

• 成果类型: Article
• 署名作者: Kempf, Elisabeth; Luo, Mancy; Schaefer, Larissa; Tsoutsoura, Margarita
• 署名单位: Harvard University; Erasmus University Rotterdam - Excl Erasmus MC; Erasmus University Rotterdam; Frankfurt School Finance & Management; Washington University (WUSTL); Centre for Economic Policy Research - UK; National Bureau of Economic Research; European Corporate Governance Institute
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2023.02.005
• 发表日期: 2023
• 页码: 150-173
• 关键词: Capital allocation; syndicated loans; Mutual funds; Political ideology; ELECTIONS

摘要

Does investors' political ideology shape international capital allocation? We provide evi-dence from two settings-syndicated corporate loans and equity mutual funds-to show ideological alignment with foreign governments affects the cross-border capital allocation by U.S. institutional investors. Ideological alignment on both economic and social issues plays a role. Our empirical strategy ensures direct economic effects of foreign elections or government ties between countries are not driving the result. Ideological distance be-tween countries also explains variation in bilateral investment. Combined, our findings im-ply ideological alignment is an important, omitted factor in models of international capital allocation.(c) 2023 Elsevier B.V. All rights reserved.