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Foreign Ownership, Stock Performance-Risk, And Macroeconomic Factors In Asean Countries

Author

Listed:
  • Ahmad Maulin Naufa

    (Bina Nusantara University)

  • Mamduh M. Hanafi

    (Universitas Gadjah Mada)

  • I Wayan Nuka Lantara

    (Universitas Gadjah Mada)

Abstract

This research examines the impact of foreign ownership on stock performance-risk and macroeconomic factors in countries of the Association of Southeast Asian Nations (ASEAN). To examine our research question, we utilize annual panel data consisting of listed companies (2007 to 2018). We find that foreign ownership enhances stock performance and gross domestic product, but it decreases risk, exchange, and interest rate. Conversely, performance and GDP attract foreign investors, but risk, exchange, and interest rates reduce it. Those results differ in diverse settings and countries.

Suggested Citation

  • Ahmad Maulin Naufa & Mamduh M. Hanafi & I Wayan Nuka Lantara, 2021. "Foreign Ownership, Stock Performance-Risk, And Macroeconomic Factors In Asean Countries," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 24(1), pages 151-168, March.
    • Handle: RePEc:idn:journl:v:24:y:2021:i:1g:p:151-168
    DOI: https://doi.org/10.21098/bemp.v24i1.1165
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    References listed on IDEAS

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    More about this item

    Keywords

    Foreign ownership; Stock performance; Risk; Macroeconomic factors; ASEAN countries;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock

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