This study provides detailed evidence on the recent transition state of Central and Eastern European (CEE) countries. It draws on data from a survey conducted among portfolio managers of Western 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 higher investment in CEE countries are identified. Second, the CEEportfolio structure is explained making use of detailed grading data from the survey. The results suggest that a reduction in general and macroeconomic risk tends to increase investment and that the potential ofhigh returns and low risk from the setting of financial markets contributes to significantly higher investment in some countries.

Köke, Jens (2000), Institutional Investment in Central and Eastern Europe: Investment Criteria of Western Portfolio Managers, Journal for Institutional Innovation, Development and Transition 4, 15-34.


Köke, Jens


Corporate governance, ownership structure