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Foreign ownership in emerging stock markets

Author

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  • Batten, Jonathan A.
  • Vo, Xuan Vinh

Abstract

We use several firm characteristics to establish the extent that information asymmetry impacts the level of foreign ownership in Vietnam. The findings indicate that foreign investors adopt a long term investment horizon and employ a buy and hold strategy to exploit potential growth prospects. These investors also avoid firms with riskier financial management practices and where information asymmetries provide advantages to domestic investors. Overall, these findings support the importance of linking deregulation with financial market openness and transparency to enhance and encourage international portfolio investment.

Suggested Citation

  • Batten, Jonathan A. & Vo, Xuan Vinh, 2015. "Foreign ownership in emerging stock markets," Journal of Multinational Financial Management, Elsevier, vol. 32, pages 15-24.
    • Handle: RePEc:eee:mulfin:v:32-33:y:2015:i::p:15-24
    DOI: 10.1016/j.mulfin.2015.05.001
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    More about this item

    Keywords

    Foreign ownership; Firm attributes; Portfolio investment; Vietnam;
    All these keywords.

    JEL classification:

    • F3 - International Economics - - International Finance
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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