TY - JOUR
T1 - Local effects of foreign ownership in an emerging financial market
T2 - Evidence from qualified foreign institutional investors in Taiwan
AU - Huang, Roger D.
AU - Shiu, Cheng Yi
PY - 2009
Y1 - 2009
N2 - We examine the local effects of equity ownership by investors who are classified as qualified foreign institutional investors in Taiwan. Our empirical analyses reveal a pronounced foreign ownership effect, whereby stocks with high foreign ownership outperform stocks with low foreign ownership. The valuation effect is present even after controlling for firm export, size, or transparency levels. We pursue a performance-based explanation for this effect and find that foreign ownershipis strongly and positively associated with firm R&D expenditures and contemporaneous and subsequent firm performance. Our evidence is consistent with foreign investors who enjoy a long-run information advantage over domestic investors.
AB - We examine the local effects of equity ownership by investors who are classified as qualified foreign institutional investors in Taiwan. Our empirical analyses reveal a pronounced foreign ownership effect, whereby stocks with high foreign ownership outperform stocks with low foreign ownership. The valuation effect is present even after controlling for firm export, size, or transparency levels. We pursue a performance-based explanation for this effect and find that foreign ownershipis strongly and positively associated with firm R&D expenditures and contemporaneous and subsequent firm performance. Our evidence is consistent with foreign investors who enjoy a long-run information advantage over domestic investors.
UR - http://www.scopus.com/inward/record.url?scp=70349920680&partnerID=8YFLogxK
U2 - 10.1111/j.1755-053X.2009.01048.x
DO - 10.1111/j.1755-053X.2009.01048.x
M3 - 期刊論文
AN - SCOPUS:70349920680
SN - 0046-3892
VL - 38
SP - 567
EP - 602
JO - Financial Management
JF - Financial Management
IS - 3
ER -