IDEAS home Printed from https://ideas.repec.org/a/bla/finrev/v50y2015i3p393-434.html
   My bibliography  Save this article

Investor Protection and the Role of Firm-Level Financial Transparency in Attracting Foreign Investment

Author

Listed:
  • Bowe Hansen
  • Mihail K. Miletkov
  • M. Babajide Wintoki

Abstract

We ask if companies can attract foreign equity capital by improving the transparency of their financial statements. Using a large panel of firms across 51 countries outside the United States, we show that the answer is yes, but only in countries with relatively high levels of investor protection. In countries with poor investor protection, unilaterally increasing firm-level transparency has no effect on foreign ownership. Furthermore, our results indicate that in countries with higher levels of investor protection, the positive association between transparency and foreign ownership is stronger following a country's adoption of the International Financial Reporting Standards.

Suggested Citation

  • Bowe Hansen & Mihail K. Miletkov & M. Babajide Wintoki, 2015. "Investor Protection and the Role of Firm-Level Financial Transparency in Attracting Foreign Investment," The Financial Review, Eastern Finance Association, vol. 50(3), pages 393-434, August.
    • Handle: RePEc:bla:finrev:v:50:y:2015:i:3:p:393-434
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/fire.12072
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Liu, Chengcheng & Li, Qing & Lin, Yu-En, 2023. "Corporate transparency and firm value: Does market competition play an external governance role?," Journal of Contemporary Accounting and Economics, Elsevier, vol. 19(1).
    2. Baig, Ahmed & DeLisle, R. Jared & Zaynutdinova, Gulnara R., 2022. "Index mutual fund ownership and financial reporting quality," Research in International Business and Finance, Elsevier, vol. 62(C).
    3. Wenjing Li & Jeff Ng & Albert Tsang & Oktay Urcan, 2019. "Country-level institutions and management earnings forecasts," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(1), pages 48-82, February.
    4. Ater, Brandon & Hansen, Bowe, 2021. "Do the specific countries in which a multinational corporation operates affect its private loan contracts?," Journal of Multinational Financial Management, Elsevier, vol. 62(C).
    5. Xu Cheng & Dongmin Kong & Xinwei Zheng & Qi Tang, 2022. "Do foreign investors crowd out sell‐side analysts? Evidence from China," The Financial Review, Eastern Finance Association, vol. 57(4), pages 815-834, November.
    6. Alina Taran & Marilena Mironiuc, 2018. "Influence Of Local Versus Foreign Corporations, As Shareholders, On Financial Performance Of Romanian Listed Companies," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 21, pages 97-116, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:finrev:v:50:y:2015:i:3:p:393-434. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/efaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.