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 |
| 卷 | 14 |
| 發行號 | 1 |
| 出版狀態 | Published - 2009 三月 1 |
指紋
All Science Journal Classification (ASJC) codes
- Business and International Management
- Strategy and Management
引用此文
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Corporate governance and long-run performance of equity issues : The role of foreign ownership in Taiwan. / Chen, Yenn Ru; Chiou, Jeng Ren; Chou, Ting-Kai; Syue, Ming Sian.
於: Asia Pacific Management Review, 卷 14, 編號 1, 01.03.2009, p. 27-46.研究成果: Article
TY - JOUR
T1 - Corporate governance and long-run performance of equity issues
T2 - The role of foreign ownership in Taiwan
AU - Chen, Yenn Ru
AU - Chiou, Jeng Ren
AU - Chou, Ting-Kai
AU - Syue, Ming Sian
PY - 2009/3/1
Y1 - 2009/3/1
N2 - 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.
AB - 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.
UR - http://www.scopus.com/inward/record.url?scp=70349513071&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=70349513071&partnerID=8YFLogxK
M3 - Article
AN - SCOPUS:70349513071
VL - 14
SP - 27
EP - 46
JO - Asia Pacific Management Review
JF - Asia Pacific Management Review
SN - 1029-3132
IS - 1
ER -