Electronic Theses and Dissertations
Identifier
1208
Date
2014
Document Type
Dissertation
Degree Name
Doctor of Business Admin
Major
Business Administration
Concentration
Finance
Committee Chair
Ronald Spahr
Committee Member
Pankaj Jain
Committee Member
David Kemme
Committee Member
Steven Jordan
Abstract
There are three essays in this dissertation. The first essay provides information regarding tax havens and its role in portfolio equity flows. For a sample of 70 countries average portfolio flows received from tax haven countries is higher than average flows received from non tax haven countries. When countries increase personal tax rates, portfolio equity flows from tax haven countries increases as compared to non tax haven countries. These effects are consistent for countries belonging to emerging, frontier and developed markets and whether a given country has high or low corporate governance. The second essay looks at the impact of tax treaties on valuations, equity flows and cost of equity capital. We construct a dyadic time series for 64 countries finding that the existence of over 2500 bilateral double taxation treaties (DTTs) facilitates effeciencies of foreign portfolio investment (FPI) by reducing investors' tax budens. Our analysis incoporates fixed effects, corporate and personal taxes and other control variables. Subsequent to countries' signing DTTS, annual flows increase significnatly, investors' benefits from tax savings, corporate equity valuation increases, and equity capital costs decline. Third essay looks at the impact of macro-economic uncertainty and stock index returns. Our resuls sugges that global GDP uncertainty is corrlated with country returns. More global macro uncertainty (GUN) is associated with higher country index returns. During non-crisis years, local macro uncertainty (CSUN) is uncorrelated with country returns. However CSUN is important for explaining market returns during extreme down markets. Thus macro uncertainty is a priced factor and differentation between country specific and global macro uncertainty is important. Lastly, we dcompose uncertainty into private and common components and study their effects.
Library Comment
Dissertation or thesis originally submitted to the local University of Memphis Electronic Theses & dissertation (ETD) Repository.
Recommended Citation
Parikh, Bhavik Rajesh, "Three Essays on International Finance" (2014). Electronic Theses and Dissertations. 1017.
https://digitalcommons.memphis.edu/etd/1017
Comments
Data is provided by the student.