Economic policy uncertainty and institutional portfolio investment
研究了经济政策不确定性对机构投资者持股的影响，发现其会减少国内外股票投资，尤其当投资国与东道国语言或法律起源不同时影响更大。
Abstract This paper investigates the impact of economic policy uncertainty (EPU) on institutional investors’ holdings of common stocks. Using a large sample of quarterly institutional ownership data from 28 countries/markets between 2000 and 2021, we find that EPU negatively affects institutional investments in both domestic and overseas stock markets. Policy uncertainty also deters foreign institutions’ inbound investments. The adverse effect of policy uncertainty on crossborder institutional investment is particularly pronounced when the investment destination country does not share the same official language or legal origin as the investing country, consistent with the information asymmetry hypothesis. Additionally, firms with higher cash holdings and lower market‐to‐book ratios are less vulnerable to the withdrawal of investment by foreign institutional investors.