臺灣博碩士論文加值系統

The aim of this study is to determine the determinants of foreign institutional
investor‟s investment in India after the entrance of foreign institutional investors in
1992. After that the number of foreign investors registered in India increased a lot.
Due to economic liberalization the economic growth of India increased very rapidly.
But it certainly had some effects. Most of the author says it is due to foreign
institutional investors. Many steps are taken by the government in order to encourage
the foreign investors to invest in Indian stock market. The investment by foreign
institutional investors has positive and negative effects. So government always takes
steps to control the capital investment by foreign institutional investors.

The aim of this study is to determine the determinants of foreign institutional
investor‟s investment in India after the entrance of foreign institutional investors in
1992. After that the number of foreign investors registered in India increased a lot.
Due to economic liberalization the economic growth of India increased very rapidly.
But it certainly had some effects. Most of the author says it is due to foreign
institutional investors. Many steps are taken by the government in order to encourage
the foreign investors to invest in Indian stock market. The investment by foreign
institutional investors has positive and negative effects. So government always takes
steps to control the capital investment by foreign institutional investors.

ABSTRACT ................................................................................................................... I
ACKNOWLEDGEMENT ............................................................................................ II
TABLE OF CONTENTS ............................................................................................. III
LIST OF TABLES ....................................................................................................... VI
LIST OF FIGURES ................................................................................................... VII
CHAPTER ONE INTRODUCTION ............................................................................. 1
1.1 Background. ..................................................................................................... 1
1.2 Motivation. ....................................................................................................... 2
1.3 Research Objectives. ........................................................................................ 2
1.4 Research Methods. ........................................................................................... 2
1.5 Framework. ...................................................................................................... 2
CHAPTER TWO LITERATURE REVIEW ................................................................. 4
2.1 Definition. ........................................................................................................ 4
2.2 Effect of Foreign institutional investors in the big emerging market like India.
......................................................................................................................... 4
2.2.1 Positive Effects. ..................................................................................... 4
2.2.2 Negative Effect. ..................................................................................... 5
2.3 Impact of Foreign institutional investors on stock market in India. ................ 6
2.4 Herding by institutional Investors. ................................................................... 8
2.5 Impact of Foreign Institutional ownership on Stock market liquidity. ............ 9
CHAPTER THREE OVERVIEW OF INDIAIN ECONOMY AND FOREIGN
INSTITUTIONAL INVESTORS IN INDIA............................................................... 11
IV
3.1 India at a Glance: ........................................................................................... 11
3.1.1 Geography and Demo graphs. .............................................................. 12
3.1.2 Government.......................................................................................... 12
3.1.3 Economic. ............................................................................................ 12
3.2 Economy of India. .......................................................................................... 12
3.3 Trends of Foreign Institutional Investment in India. ..................................... 14
3.4 Analysis of Trends in FII investment. ............................................................ 14
3.5 Registration Process for Foreign Institutional Investors. ............................... 16
3.6 Registration Process of FII‟s. ......................................................................... 17
CHAPTER FOUR DETERMINATIONS OF FOREIGN INSTITUTIONAL
INVESTOR INVESTMEN IN INDIA ........................................................................ 18
4.1 Introduction. ................................................................................................... 18
4.2 Determinants of Foreign Institutional Investors Investment in India. ........... 18
4.2.1 Corporate Governance. ........................................................................ 19
4.2.2 Government Policies. .......................................................................... 20
4.2.3 Firm Size. ............................................................................................ 21
4.2.4 Ownership Structure. ........................................................................... 22
4.2.5 Corporate Performance: ...................................................................... 22
4.2.6 Inflation Rate. ...................................................................................... 23
4.2.7 Portfolio Investment. ........................................................................... 23
4.2.8 Price to Book value. ............................................................................ 24
CHAPTER FIVE CONCLUSION AND RECOMMENDATIONS ........................... 25
5.1 Summary of Findings. .................................................................................... 25
5.1.1 Foreign institutional investors in India. ............................................... 25
5.1.2 Determinants of Foreign Institutional Investors Investment. .............. 25
V
5.2 Contributions. ................................................................................................. 26
5.3 Suggestions for Government. ......................................................................... 26
5.4 Recommendations for Further Research. ....................................................... 27
REFERENCES ............................................................................................................ 28

28

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