Previous articles examined international portfolio investments either by
a single investor or to a single destination. We examine the determinants of
international equity investment patterns using multiple pairs of source and
host countries. Specifically, we investigate how the corporate governance
institutions in investing and recipient countries are associated to equity
investment and divestiture using the 2006 and 2008 Coordinated Portfolio
Investment Survey (CPIS) data. We find that source countries buy equities
in host countries with strong governance more than in host countries
with weak governance. We also find that investors from strong governance
countries disproportionately sell more their equities in weak governance
countries during the recent economic crisis. However, investors from weak
governance countries do not demonstrate such divestiture pattern
