The Impact of Foreign Ownership on Stock Volatility in Indonesia

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.

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Impact of Institutional Investment Pattern on Stock Volatility: A Study of BSE-30 Companies

IRA-International Journal of Management & Social Sciences (ISSN 2455-2267) ◽

10.21013/jmss.v3.n1.p11 ◽

2016 ◽

Vol 3 (1) ◽

Author(s):

Harendra Singh

Keyword(s):

Institutional Investors ◽

Institutional Ownership ◽

Stock Volatility ◽

Institutional Investment ◽

Investment Pattern ◽

Institutional Holdings ◽

The Mind ◽

The Impact

There are many studies found in the field of stock volatility and institutional investors. Most of the studies found an inconsistent relationship between volatility and institutional investors. It creates a curiosity in the mind of investor, whether riskier securities attract institutional investors or an increase in institutional holdings results in an increase in volatility. In this paper we tried to examine the impact of institutional ownership pattern on stock volatility. We have considered BSE-30 companies and taken 5 year data from 1st January 2009 to 1st January 2014. Our result shows that institutional ownership has positive and significant impact on stock volatility.

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Capital Market Response to COVID-19 Pandemic – A Systematic Review on Stock Volatility and Performance

Marsyangdi Journal ◽

10.3126/mj.v2i1.39963 ◽

2021 ◽

pp. 27-49

Author(s):

Janga Bahadur Hamal ◽

Rishi Raj Gautam

Keyword(s):

Stock Market ◽

Investor Sentiment ◽

Market Volatility ◽

Stock Market Volatility ◽

Stock Volatility ◽

Government Response ◽

Stock Market Performance ◽

Policy Measures ◽

And Performance ◽

The Impact

This paper aims to identify the impact of the COVID-19 pandemic on stock market volatility and market return as well as the impact of government response to the COVID-19 pandemic on stock market performance. To analyze the same, the paper has adopted Systematic Literature Review (SLR) approach and conducted a review of 40 journal articles published between between2020 to mid-2021. The paper identified that the short-term impact of the COVID-19 outbreak and government policy measures had a significant and adverse impact on stock market volatility, return and overall performance. In the longer term, the stock markets slowly started to stabilize and revive. This effect on the stock market was also attributed to investor sentiment and thus, in the later stages, targeted government response had a positive effect on boosting investor confidence towards the market.

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Financial internationalization of emerging country multinationals: evidence from India

Qualitative Research in Financial Markets ◽

10.1108/qrfm-12-2020-0229 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Mariam Jamaleh ◽

Abha Shukla

Keyword(s):

Foreign Ownership ◽

Independent Directors ◽

Firm Level ◽

Advanced Country ◽

Content Type ◽

Study Approach ◽

Cross Listing ◽

Emerging Country ◽

Financial Internationalization ◽

The Impact

Purpose Financial internationalization is of particular importance to emerging country firms. Its significance arises from the impact of institutional void and related agency problems (common to emerging markets) on the internationalization path of these firms. Building on concepts from international finance, agency theory and institutional theory, this paper aims to examine the main aspects of financial internationalization by emerging country multinationals, namely, cross-listing, foreign ownership and foreign independent directors. Design/methodology/approach This paper follows a multiple case study approach which is a good fit for the exploratory nature of this research. The interest is to examine the context-driven financial internationalization of each case firm and replicate the firm-level information to find a common strategy. Findings The findings suggest that financial internationalization by emerging country multinationals starts mainly as these firms plan to enter advanced country markets. It is a dynamic process that entails interaction between financial internationalization and real internationalization, as well as among different aspects of financial internationalization. Cross-listing comprises the first stage of the process. Then, foreign ownership, particularly foreign institutional investments, would increase gradually in response to advances in financial and factor markets. Recruiting foreign independent directors seems to be adopted last, possibly out of fear of losing control of strategic decisions. Originality/value This paper presents a unique perspective that delineates different stages of the process of financial internationalization by emerging country multinationals. This complements the efforts to explain the distinct path of internationalization followed by these firms and supplements scarce literature by including emerging multinationals from India where the matter has not yet attracted proper attention.

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