1. OSAMA WAGDI - Faculty of Economics and International Trade, Egyptian Chinese University, Cairo, Egypt.
2. EMAN SALMAN - Faculty of Commerce and Business Administration, Helwan University, Cairo, Egypt.
The study investigated the impact of Sovereign Credit Ratings on Indirect Foreign Investment flows to equity markets through panel data for seven equity markets (Argentina, Brazil, Egypt, India, Nigeria, South Africa and the United Arab Emirates) from q1 2015 to q4 2019. The study created an index of equal weights based on Fitch, Moody's and Standard & Poor's assessments. The study found a significant impact of sovereign credit ratings on indirect foreign investment flows to equity markets at the level of 1%. This explains (12.89%) of indirect foreign investment flows to equity markets. The study can estimate other factors impacting the flow of indirect foreign investment, including factors such as the size of the equity markets and the level of equity market efficiency, It is recommended that these factors be tested in future studies.
Sovereign Credit Ratings; Indirect Investment; Foreign Investment; Equity Markets.