The impact of foreign ownership on return volatility, volume, and stock risks: Evidence from ASEAN countries

2019 ◽  
Vol 64 ◽  
pp. 221-235 ◽  
Author(s):  
Ahmad Maulin Naufa ◽  
I Wayan Nuka Lantara ◽  
Wee-Yeap Lau
Keyword(s):  
Foreign Ownership ◽  
Return Volatility ◽  
Asean Countries ◽  
The Impact

scholarly journals FOREIGN OWNERSHIP, STOCK PERFORMANCE-RISK, AND MACROECONOMIC FACTORS IN ASEAN COUNTRIES

2021 ◽  
Vol 24 (1) ◽  
pp. 151-168
Author(s):  
Ahmad Maulin Naufa ◽  
Mamduh M. Hanafi ◽  
I Wayan Nuka Lantara
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Research Question ◽  
Foreign Ownership ◽  
Macroeconomic Factors ◽  
Stock Performance ◽  
Foreign Investors ◽  
Performance Risk ◽  
Asean Countries ◽  
The Impact

This research examines the impact of foreign ownership on stock performance-risk and macroeconomic factors in countries of the Association of Southeast Asian Nations (ASEAN). To examine our research question, we utilize annual panel data consisting of listed companies (2007 to 2018). We find that foreign ownership enhances stock performance and gross domestic product, but it decreases risk, exchange, and interest rate. Conversely, performance and GDP attract foreign investors, but risk, exchange, and interest rates reduce it. Those results differ in diverse settings and countries.

Large Foreign Ownership and Firm-Level Stock Return Volatility in Emerging Markets

2011 ◽  
Vol 46 (4) ◽  
pp. 1127-1155 ◽  
Author(s):  
Donghui Li ◽  
Quang N. Nguyen ◽  
Peter K. Pham ◽  
Steven X. Wei
Keyword(s):  
Emerging Markets ◽  
Stock Return ◽  
Foreign Ownership ◽  
Return Volatility ◽  
Firm Level ◽  
Foreign Investors ◽  
Stock Return Volatility ◽  
Emerging Stock Markets ◽  
The Impact

AbstractThis study constructs a firm-level measure of large foreign ownership (LFO) and investigates its impact on stock return volatility in 31 emerging markets. We find a negative relationship between LFO and volatility, even after controlling for potential endogeneity and the impact of major domestic shareholders. This suggests a stabilizing role of LFO in emerging markets, which is consistent with previous suggestions in the literature on the strong commitments and potential monitoring role of large foreign shareholders. Overall, our study highlights the importance of recognizing the heterogeneity among foreign investors and the benefits of large foreign shareholders to emerging stock markets.

The Impact of Foreign Ownership on Corporate Philanthropy in Korea

2018 ◽  
Vol 21 (2) ◽  
pp. 135-163
Author(s):  
Jonghoon Nam ◽  
David Yong Ko ◽  
Mugoan Jeong
Keyword(s):  
Corporate Philanthropy ◽  
Foreign Ownership ◽  
The Impact

News and Idiosyncratic Volatility: The Public Information Processing Hypothesis*

2020 ◽  
Author(s):  
Robert F Engle ◽  
Martin Klint Hansen ◽  
Ahmet K Karagozoglu ◽  
Asger Lunde
Keyword(s):  
Information Processing ◽  
Public Information ◽  
Selection Procedure ◽  
Autoregressive Process ◽  
Return Volatility ◽  
Market Outcomes ◽  
The Public ◽  
Additional Information ◽  
Financial News ◽  
The Impact

Abstract Motivated by the recent availability of extensive electronic news databases and advent of new empirical methods, there has been renewed interest in investigating the impact of financial news on market outcomes for individual stocks. We develop the information processing hypothesis of return volatility to investigate the relation between firm-specific news and volatility. We propose a novel dynamic econometric specification and test it using time series regressions employing a machine learning model selection procedure. Our empirical results are based on a comprehensive dataset comprised of more than 3 million news items for a sample of 28 large U.S. companies. Our proposed econometric specification for firm-specific return volatility is a simple mixture model with two components: public information and private processing of public information. The public information processing component is defined by the contemporaneous relation with public information and volatility, while the private processing of public information component is specified as a general autoregressive process corresponding to the sequential price discovery mechanism of investors as additional information, previously not publicly available, is generated and incorporated into prices. Our results show that changes in return volatility are related to public information arrival and that including indicators of public information arrival explains on average 26% (9–65%) of changes in firm-specific return volatility.

scholarly journals Financial Inclusion and Firms Growth in Manufacturing Sector: A Threshold Regression Analysis in Selected Asean Countries

Economies ◽  
2020 ◽  
Vol 8 (4) ◽  
pp. 80
Author(s):  
Rosmah Nizam ◽  
Zulkefly Abdul Karim ◽  
Tamat Sarmidi ◽  
Aisyah Abdul Rahman
Keyword(s):  
Financial Services ◽  
Firm Growth ◽  
Manufacturing Sector ◽  
Threshold Level ◽  
Financial Inclusion ◽  
Manufacturing Firm ◽  
New Findings ◽  
Asean Countries ◽  
The Impact ◽  
Threshold Point

This paper examines the effect of financial inclusion on the firm growth of the manufacturing sector (513 firms) in selected ASEAN countries (Malaysia, Philippines, and Vietnam) using a cross-section threshold estimation technique. The levels of financial inclusion across firms were measured based on the distribution of financial services (access to credit). The main findings revealed that there is a non-monotonic effect of financial inclusion on the firm’s growth. These findings show that the impact of financial inclusion on firm growth in the manufacturing sector is significantly positive below a threshold point, and turns to significantly negative after a certain threshold point has been reached. These new findings suggest that manufacturing firm owners and banking institutions should deepen their financial inclusion efforts, and limit the distribution of credit access within the optimum value or threshold level in promoting the growth of the firm.

scholarly journals A Study on Ownership Structure and Financial Performance of Listed Beverage Food and Tobacco Companies in Sri Lanka

2017 ◽  
Vol 7 (2) ◽  
pp. 36
Author(s):  
Saseela Balagobei ◽  
Thirunavukkarasu Velnampy
Keyword(s):  
Sri Lanka ◽  
Financial Performance ◽  
Ownership Structure ◽  
Relevant Literature ◽  
Foreign Ownership ◽  
Study Data ◽  
Secondary Sources ◽  
Correlation And Regression Analysis ◽  
Corporate Governance Mechanisms ◽  
The Impact

The relevant literature suggests that ownership structure is one of the main corporate governance mechanisms influencing the scope of financial performance. The aim of this study is to investigate the relationship between ownership structure and financial performance of listed beverage food and tobacco companies for the period of 2010-2015. This study also examines the impact of ownership structure on financial performance. The sample consists of 10 listed beverage food and tobacco companies in Sri Lanka. In this study, data was collected from secondary sources and hypotheses are examined by using Pearson’s correlation and regression analysis. The results reveal that ownership concentration and foreign ownership structure are positively correlated with financial performance of listed beverage food and tobacco companies while institutional ownership structure isn’t significantly correlated with financial performance. It is also found that there is a significant impact of foreign ownership structure on financial performance. Higher the foreign ownership structure in listed beverage food and tobacco companies, the higher the financial performance which is preferable for the shareholders and it improves the wealth of companies.

Was India Right in Not Joining RCEP? A Cost–Benefit Analysis

2021 ◽  
pp. 097492842110477
Author(s):  
Monika Jain
Keyword(s):  
New Zealand ◽  
South Korea ◽  
Free Trade ◽  
Trade Diversion ◽  
Trade Agreements ◽  
Asia Pacific ◽  
Trade Creation ◽  
Asean Countries ◽  
The Cost ◽  
The Impact

India dropped out of the Regional Comprehensive Economic Partnership (RCEP), which included the Association of Southeast Asian Nations (ASEAN) countries, China, South Korea, New Zealand, Japan and Australia, after negotiating for almost seven years in November 2018 on the grounds of national interest and also that free trade agreements (FTAs) did not amount to free trade and led to more trade diversion than trade creation. The cost and benefit of a regional agreement depend on the amount of trade creation with respect to trade diversion (Panagriya, 2000). This study tries to examine India’s concerns and at the same time, highlights the cost of not joining RCEP. India’s trade deficit with 11 out of the 15 RCEP nations has been a major cause of concern. Unfavourable trade balance, concerns about the impact on dairy sector, economic slowdown, past experience with FTA’s, China factor, data localisation, rules of origin, the experience of ASEAN countries with Sino-FTA have been some of the reasons behind India’s decision to opt-out of this mega multilateral agreement. Also, bilateral trade agreements with some RCEP countries such as Japan, Malaysia, Singapore, Thailand and South Korea were operational. A multilateral trade agreement with ASEAN countries was very much in place. So, trade between India and 12 of the RCEP member countries would not have changed much after India’s inclusion in RCEP. The impact of lower tariffs would have been evident for the remaining three countries: China, Australia and New Zealand. Furthermore, there was fear of a massive surge in imports of manufactures from China, dairy imports from Australia and New Zealand. This study also examines the long term impact of this decision and if India has missed out on becoming a part of the global value chain and gaining greater market access in the Asia Pacific region. India’s policy of import substitution and protectionism did not capitulate desired results in the past. Hence, a critical evaluation of India’s decision and some validation on her concerns and fears have been done.

scholarly journals PENGARUH PEMBANGUNAN INFRASTRUKTUR TELEKOMUNIKASI TERHADAP PERTUMBUHAN EKONOMI DI ASEAN

2019 ◽  
Vol 4 (1) ◽  
Author(s):  
Galih adi Prasetyo
Keyword(s):  
Economic Growth ◽  
Trade Openness ◽  
Dynamic Panel Data ◽  
Infrastructure Development ◽  
Method Of Moment ◽  
Telecommunications Infrastructure ◽  
Telecommunication Infrastructure ◽  
Asean Countries ◽  
Urbanization Rate ◽  
The Impact

Abstract This study aims to determine the effect of the development of telecommunications infrastructure to economic growth in ASEAN. Generalized Method of Moment (GMM) is used to test how telecommunication infrastructure development to economic growth in ASEAN. This study uses a dynamic panel data from 10 ASEAN countries in the period 2000-2013. Variables used in this research is the GDP growth, the development of telecommunication infrastructure index, foreign direct investment, trade openness, and urbanization rate. Tests were performed using STATA 13.0 software shows the use sys-GMM better than diff-GMM. The results of this study indicate the development of telecommunications infrastructure significantly affect economic growth but had negative relationships. Based on the theory of demand following hypothesis (DFH) economic growth leads to the development of telecommunications infrastructure. The impact of telecommunications infrastructure development is only emerge through the product or outcome of economic growth. Telecommunications infrastructure development is considered as the impact of economic growth continues to increase.

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