| With the rapid development of the Internet and new media technologies,the Internet and social media are not only powerful competitive tools for a country in the international arena,but also an important means to promote the overall economic,political and cultural development of a country.On the one hand,the Internet has become an important channel for information acquisition and dissemination,and investors have more and more channels and ways to obtain information globally,and the cost of information acquisition is decreasing,while noise information and invalid information are also increasing,and the cost of information screening is also increasing.In the information age,the explosive growth of information has generated a huge amount of data.The allocation of investors attention is particularly important in the face of the increasing amount of information.Behavioral finance research on limited attention based on psychology found that investors attention to market information is a scarce cognitive resource.The limited allocation of investors attention directly affects the allocation of information resources and the acquisition of effective information.At the same time,"capital market is a market of information plus confidence".On the one hand,the media is a powerful voice tool for the country in the international arena,guaranteeing the transparency,timeliness and extensiveness of information disclosure;on the other hand,the value guidance function of the media has a profound impact on market expectations and investor confidence.With the wide dissemination of media,the importance of public opinion has become increasingly prominent.The emergence of big data and artificial intelligence technologies in recent years has provided a more direct and effective measurement method and data base for the study of attention and media opinion.How to effectively measure and utilize public attention and media attention,and how to investigate the influence of public attention and media opinion on the cross-border asset allocation of international funds and their intrinsic influence mechanisms are of great theoretical value and practical significance for Chinas future economic development and the formation of a "double-loop" development pattern.There has been extensive research in the literature on global capital flows at the macro level and fund cross-country asset allocation at the micro level;however,public attention and media opinion as important non-economic factors have not been well discussed as drivers.Most academic studies have used search indices as proxies for public attention,focusing mostly on the ability of investor attention to significantly influence investors decision-making behavior and investment behavior,and thus the overall stock market,but relatively little research has been conducted on how it affects macro-level international global capital flows and micro-level fund cross-country asset allocation.Similarly,current research on media public opinion focuses mostly on its impact on corporate governance and securities markets,while relatively little research has been conducted on its impact on macro international global capital flows and micro fund cross-country asset allocation.This paper will use public attention and media as an entry point to give evidence from the micro fund cross-country asset allocation level,which is somewhat pioneering and innovative.This paper first systematically reviews the domestic and international literature related to the topic of this paper,including studies on the drivers of international capital flows,micro-level studies on fund cross-country asset allocation,studies related to public attention and studies related to media opinion.To better understand the theories related to public attention and media opinion,this paper compares the limited attention and attention allocation theory,search cost theory and perceptual load theory related to public attention,and the signaling theory,information asymmetry theory,agenda setting theory and spiral of silence theory related to media opinion.Next,this paper further explores the impact of public attention and media opinion sentiment on international fund cross-country asset allocation and their mechanisms of action from theoretical and empirical perspectives.Specifically,it includes the following three parts.First,the impact of public attention on international fund cross-country asset allocation and its mechanisms.Second,the impact of media opinion sentiment on international fund cross-country asset allocation and its mechanisms,and explores the interaction between public attention and media opinion the interaction of public attention and media opinion sentiment.Third,the analysis of the role of public attention and media attention under exogenous trade policy shocks.The main findings of this paper are:（1）Introducing informational theory to fund-level high-frequency data,it shows that public attention to a country can induce private attention from fund managers and thus attract investment.This paper demonstrates that international funds investments in destination countries are positively influenced by public attention by constructing a theoretical model.Further,using micro data of international funds portfolio allocation,the public attention is measured by constructing an Abnormal Public Attention Index ASVIijtthrough search volume data provided by Google Trends（Google Trends）.The study finds that public attention in the funds country of domicile significantly increases the funds po rtfolio allocation in the destination country;while increased public attention in the destination country by third countries leads to crowding out of the funds portfolio allocation in that country.This finding remains robust to a series of sensitivity analyses.Further,the role of information quality and information intensity is explored from an information perspective.Referring to Gelos and Wei（2005）,macro data transparency and macro policy transparency are chosen to measure the quality of public information in the destination country;the variable "public credit registry coverage" is chosen to represent public information intensity;and the variable "private credit bureau coverage" is used to represent private information intensity.The variable "public credit registry coverage" is used to represent the intensity of public information,and the variable "private credit bureau coverage" is used to represent the intensity of private information.We find that the quality of public information and the strength of public information in a country can promote the positive impact of public attention on the cross-country asset allocation of international funds,while the strength of private information in a country can weaken the impact of public attention on the cross-country asset allocation of international funds.In terms of individual heterogeneity of funds,the more countries or regions a fund invests in,the smaller the impact of unusual public attention on international funds cross-country asset allocation;while the cross-country portfolio allocation of funds with cash holdings and funds with larger fund size is less affected by public attention.（2）Using the Google Summary data platform to collect media opinion data between countries and construct a media opinion index,combined with micro data on mutual funds global portfolios,we investigate how funds investments in destination countries are influenced by media opinion.The study finds,first,that media opinion subtly influences investors preferen ces and perceptions of other countries,which in turn affects their investment decisions.Thus,funds in a country tend to increase their portfolio allocation to the destination country when media sentiment about another country is more positive,while funds in that country tend to decrease their portfolio allocation to the destination country when media sentiment about another country is more negative.This finding remains robust after a series of sensitivity analyses.Second,cultural differences between two countries have a negative impact on communication and messaging between the two countries.Thus,cultural differences significantly amplify the impact of media sentiment on international portfolio allocation.In contrast,the colonized country is imported with the culture of the suzerain country,which to some extent shortens the cultural distance between the two countries and therefore may weaken the impact of media sentiment on the cross-country asset allocation of international funds.Compared to trade,closer FDI ties promote cultural exchange and integration and reduce cultural distance,which may likewise weaken the impact of media opinion on international funds cross-country asset allocation.Third,countries with higher GDP growth rates are more resilient to media opinion.Investors will not easily give up or reduce their investments in these fast-growing economies;likewise,countries with lower political risk and a good legal system environment are more resistant to media opinion.Fourth,funds that are inherently risk-averse,such as funds with higher investment concentrations or funds that have made country credit purchases,may be less susceptible to media sentiment.Further,this chapter also explores the interaction between public attention and media opinion.The study finds that more public attention will not affect the facilitating effect of positive media opinion on international funds cross-border asset allocation,but may amplify the negative effect of negative media opinion on international funds cross-border asset allocation.（3）The role of public attention and media opinion under exogenous trade policy shocks is discussed.This paper selects anti-dumping policy as an exogenous trade policy shock.Based on the anti-dumping policy data provided by Global Trade Alert and global fund portfolio allocation data,we first study the impact of anti-dumping policy implementation on international funds cross-country asset allocation,and further explore the role of public attention and media opinion under the anti-dumping policy shock on this basis.The findings suggest that the implementation of AD policy leads to a reduction in portfolio allocation of sanctioned country funds to sanctioned countries;media opinion may weaken the negative impact of AD policy on international funds cross-country asset allocation,while public attention amplifies the negative impact of AD policy on international funds cross-country asset allocation.Further,the paper also investigates some other heterogeneities.It is found that international funds tend to withdraw more assets from sanctioned countries that have close trade ties with the funds country of incorporation;and stronger direct investment ties can weaken the negative effects of anti-dumping policies.In addition,higher levels of economic development,liberal economic regulation,and stable,clean governments can weaken the negative effects of ADP international funds cross-country asset allocation;higher-risk funds,such as growth funds or funds that have made credit purchases,are more responsive to ADP.The innovative aspects of this paper are mainly reflected in the following aspects.First,it fills the gap in research on public attention and media opinion as drivers of international capital flows.This study focuses on the impact and mechanism of public attention and media opinion on the cross-country asset allocation of international funds,which effectively complements the gap in the literature on the drivers of global capital flows.Second,it enriches the research on international capital flows in micro-cross-country asset allocation.Most studies on international capital flows in the existing literature are limited to the macro perspective,ignoring the differences of individual cross-country investors,yet it is the individual-level cross-country asset allocation that determines the micro essence of global capital flows.This study focuses on micro investment agents and explores the impact mechanisms of public attention and media opinion acting on global capital flows at the micro level,while providing targeted suggestions for the formulation of effective micro international investment policies.Third,it fills the research gap of attention and media opinion research in cross-country studies.This paper fills this gap by using Google Trends data to construct a bilateral index of abnormal public attention and GDLET data to construct a bilateral media opinion,and exploring the impact of public attention and media opinion on international funds cross-border asset allocation.The paper also explores the impact and mechanism of public attention and media opinion on the cross-country asset allocation of international funds.Fourth,it provides a relevant theoretical basis for the government to formulate financial liberalization policies.The research in this paper has strong practical relevance and application prospects,and can provide references for relevant Internet and media policies and public opinion monitoring instruments.Establishing bilateral and global media opinion monitoring paths,exploring the functions of the media in the financial market,guiding and regulating the media to better serve the opening of the capital market,and contributing to the formulation of practical and effective financial opening policies,reflect the characteristics of combining scientific problem response and applied policy design. |
