Factors That Affect Canadian Propensity to Direct Investment Abroad: Evidence from the Indian Real Estate Market

ABSTRACT

This study examines the affects of Canadian investors’ direct investment expertise and perception on capital losses on their propensity to directly invest in the Indian real estate market. Canadian investors were surveyed to find out the degree to which investors’ direct investment expertise and perception on capital losses impact on investors’ propensity to direct investment. To test the effects of the above variables, Canadian were asked about their beliefs and feelings regarding their propensity to directly invest in the Indian real estate market. They were also asked about perceptions on capital losses. We found that the degree of Canadian investors’ propensity to direct investment is related to the degree of investors’ investment expertise and their perception on capital losses; but the extent of these factors differ based on age and level of education of Canadian investors. The findings may be useful for investment managers.