Corporate governance and long-run performance of equity issues: The role of foreign ownership in Taiwan

Yenn Ru Chen, Jeng Ren Chiou, Ting-Kai Chou, Ming Sian Syue

研究成果: Article同行評審

9 引文 斯高帕斯(Scopus)

摘要

It is widely argued that foreign shareholding is a mechanism for improving corporate governance in emerging markets. We provide the evidence of the monitoring benefits of foreign ownership of equity issues, a setting where we argue the effects of monitoring are likely to be important. We analyze the relationship between foreign ownership and stock price, as well as operating performance following public equity issues, by using a sample of Taiwanese firms conducting seasoned equity offerings (SEOs) from 1991 to 2002. Empirical results show that post-issue stock returns and changes in operating performance are positively and significantly related to the post-issue level of foreign ownership. The effects of domestic institutional investors such as family and business affiliations are insignificant. We empirically exclude the argument that the findings are due to sophisticated investment strategies or momentum propensity of foreign investors. To our knowledge, this result has not been previously documented.

原文English
頁(從 - 到)27-46
頁數20
期刊Asia Pacific Management Review
14
發行號1
出版狀態Published - 2009 三月 1

All Science Journal Classification (ASJC) codes

  • 商業與國際管理
  • 策略與管理

指紋

深入研究「Corporate governance and long-run performance of equity issues: The role of foreign ownership in Taiwan」主題。共同形成了獨特的指紋。

引用此