ABSTRACT
In transition countries, privatization and financial liberalization have facilitated portfolio investment inflows in approaching public companies in the last two decades. These result in controversies about the effects of liberalization policies and whether the participation of foreign institutional investors as shareholders impacts firm performance. This chapter examines foreign portfolio investment in Bosnia and Herzegovina, Serbia, Ukraine, and Vietnam from 2007 to 2019 and analyses whether the holdings of foreign institutional investors affect Tobin’s Q. Some perspectives on the opportunities and challenges of portfolio investment for public firms in transition countries are also presented in this chapter.
