RATIONALE, MOTIVATION AND EFFECT OF FOREIGN INVESTMENT IN VIETNAMESE COMPANIES

Search for this publication on Google Scholar
Le, B. (2014). RATIONALE, MOTIVATION AND EFFECT OF FOREIGN INVESTMENT IN VIETNAMESE COMPANIES. Unc Charlotte Electronic Theses And Dissertations.
Download PDF

Analytics

62 views ◎
33 downloads ⇓


Abstract

Existing literatures have documented that foreign investors in developed markets hold disproportionately more shares of firms with high turnover rates. In Vietnam, I find evidence that foreign investor ownership percentage is higher in firms with lower turnover rates, firms located in the south of Vietnam, firms listed on the Hochiminh stock exchange, firms that are listed longer on the exchange, large firms, and firms with low past returns. The effect of turnover rate on foreign ownership percentage is weak, while the coefficients of firm size and firm age since IPO are consistently robust.I find that foreign investors hold more in firms with lower government ownership, and firms audited by a prestigious international audit company only holds for firms listed on the Hanoi exchange. I find that the thesis that foreign investor percentage ownership stakes are higher in firms with higher current ratios holds only for the firms listed on the Hochiminh stock exchange. Although average firm size is higher for State-Owned Enterprises (SOEs) and foreign investors strongly prefer investing in large size firms, they strongly show their preference in firms other than SOEs. By excluding the effect of size, I find that foreign ownership percentage stakes in firms listed on the Hanoi exchange are lower than foreign ownership percentage stakes in firms listed on the Hochiminh exchange. Interestingly, since dividend began being taxed, foreigner ownership percentage has been lower in firms with high dividend yields.

Details
Author

Le, Ben

Title

RATIONALE, MOTIVATION AND EFFECT OF FOREIGN INVESTMENT IN VIETNAMESE COMPANIES

Physical Description

1 online resource (116 pages) : PDF

Date

2014

Degree Granting Institution

University of North Carolina at Charlotte

Abstract

Existing literatures have documented that foreign investors in developed markets hold disproportionately more shares of firms with high turnover rates. In Vietnam, I find evidence that foreign investor ownership percentage is higher in firms with lower turnover rates, firms located in the south of Vietnam, firms listed on the Hochiminh stock exchange, firms that are listed longer on the exchange, large firms, and firms with low past returns. The effect of turnover rate on foreign ownership percentage is weak, while the coefficients of firm size and firm age since IPO are consistently robust.I find that foreign investors hold more in firms with lower government ownership, and firms audited by a prestigious international audit company only holds for firms listed on the Hanoi exchange. I find that the thesis that foreign investor percentage ownership stakes are higher in firms with higher current ratios holds only for the firms listed on the Hochiminh stock exchange. Although average firm size is higher for State-Owned Enterprises (SOEs) and foreign investors strongly prefer investing in large size firms, they strongly show their preference in firms other than SOEs. By excluding the effect of size, I find that foreign ownership percentage stakes in firms listed on the Hanoi exchange are lower than foreign ownership percentage stakes in firms listed on the Hochiminh exchange. Interestingly, since dividend began being taxed, foreigner ownership percentage has been lower in firms with high dividend yields.

Genre

doctoral dissertations

Subjects--Topics

Finance

Degree

Ph.D.

Keywords

Equity Home Bias
Transition Economy
Vietnam
FDI

Subject Area

Business Administration

Advisor(s)

Blenman, Lloyd

Committee Members

Lin, Hwan
Clark, Steven
Elias, Nabil

Degree Note

Thesis (Ph.D.)--University of North Carolina at Charlotte, 2014.

Rights Statement

This Item is protected by copyright and/or related rights. You are free to use this Item in any way that is permitted by the copyright and related rights legislation that applies to your use. For other uses you need to obtain permission from the rights-holder(s). For additional information, see http://rightsstatements.org/page/InC/1.0/.

Rights Holder Information

Copyright is held by the author unless otherwise indicated.

Identifier

Le_uncc_0694D_10619

Permalink

http://hdl.handle.net/20.500.13093/etd:526