2020
DOI: 10.1108/sajbs-10-2019-0188
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Determinants of foreign investment in Pakistan

Abstract: PurposeThe purpose of this study is to examine the effect of country- and firm-specific factors on foreign investment in Pakistan.Design/methodology/approachThis study uses time-series data for country-level determinants and uses panel data for 100 listed non-financial companies selected based on market capitalisation from 2005 to 2015.FindingsFindings suggest that the stock market returns and liquidity of the country significantly positively influence the foreign portfolio investment (FPI) in Pakistan. Wherea… Show more

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Cited by 6 publications
(5 citation statements)
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“…This is due to the reason that there is a constant short-term fluctuation in Indonesian inflation, hence does not affect the foreign investors to invest in Indonesia. This finding is in accordance with the study done which stated that inflation does not affect the foreign direct investment [16]; [21]. However, this finding is contradictory with [15]; [19].…”
Section: Discussionsupporting
confidence: 90%
“…This is due to the reason that there is a constant short-term fluctuation in Indonesian inflation, hence does not affect the foreign investors to invest in Indonesia. This finding is in accordance with the study done which stated that inflation does not affect the foreign direct investment [16]; [21]. However, this finding is contradictory with [15]; [19].…”
Section: Discussionsupporting
confidence: 90%
“…It is argued that foreign institutional investors choose to buy shares in big companies, distribute high dividends, issue global depository receipts and invest in firms that are financially leveraged and have low capital gain yield (Ullah and Tahir, 2020). As shown by Chung and Zhang (2011), corporate governance considerations are less likely to affect the investment decisions of non-institutional investors because they are less likely to actively monitor the firms in which they invest, and they are not subject to the same strict fiduciary responsibilities as institutional investors.…”
Section: Literature Review and Hypotheses Developmentmentioning
confidence: 99%
“…Foreign direct investment is crucial to a nation's development (Ullah & Tahir, 2022). Foreign direct investment in emerging nations that depend on capital inflows to support their economies' expansion (Kumari & Sharma, 2017).…”
Section: Introductionmentioning
confidence: 99%