This study provides detailed evidence on the recent transitionstate of Central and Eastern European (CEE) countries. It draws on data froma survey conducted among portfolio managers ofWestern investment funds thereby making use of the knowledge of experts inCEE markets. The approach of the study is two-fold:First, criteria for portfolio investment and current barriers to higherinvestment in CEE countries are identified. Second, the CEEportfolio structure is explained making use of detailed grading data fromthe survey. The results suggest that a reduction in general andmacroeconomic risk tends to increase investment and that the potential ofhigh returns and low risk from the setting of financialmarkets contributes to significantly higher investment in some countries.


Köke, Jens


Corporate governance,Ownership structure