Foreign Institutional Investors, Shareholding Change, and Corporate Governance

Ni, Yensen; Liao, Yulu; Huang, Paoyu

doi:10.1080/1540496x.2015.1105634

Cited by 9 publications

(12 citation statements)

References 61 publications

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“…For example, parameters ROE (0.1642), SIZE (0.0209), RET (0.0130), and MSCI (0.0081) were all significantly positive, indicating that the institutional investors in China prefer firms with high values of ROE, SIZE, or RET, or they like the firms classified as MSCI. This result indicates that investors like to invest the firms with better financial performance [40]. This phenomenon seems to be consistent with those found in DelGuercio [41], Falkenstein [19], Dahlquist and Robertsson [15], and Chao and Chen [42], because when selecting a firm for institutional investors, the return [41] and the size of the firm [15,21] are crucial factors.…”

Section: Do Firm-level Characteristics and Regional Industrial Develosupporting

confidence: 78%

Sustainable Returns: The Effect of Regional Industrial Development Policy on Institutional Investors’ Behavior in China

Lin

Jun

et al. 2018

Sustainability

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Abstract:Within the market economy system controlled by the Chinese government, this study mainly explores whether government policies can sufficiently guide the investment decisions of professional investors. Thus, we examine whether professional investment institutions can support the government's policy for long-term investment to produce sustainable returns and create value for both the country and investment institutions. To perform this test, we use the annual data from firms held by institutional investors and listed in China A-shares to run a panel regression model. We then explore the following three issues: first, we examined whether firm-level characteristics or regional industrial development policy affect the investment behavior of the institutional investors. Second, we investigated whether four types of institutions have different favorite economic regions in China under the regional industrial development policy. Third, we analyzed which type of institutional investor supports the regional industrial development policy. The above four types of institutions are: independent, grey, domestic, and qualified foreign institutions. Empirical results show that both firm-level characteristics and regional industrial development policy can affect the investment behavior of the institutional owners. Of all the firm-level characteristics selected by institutions in China, return on equity (ROE) is the condition most commonly selected for all types of institutions, whereas the dividend yield (DY) is considered only by qualified foreign institutional investors (QFIIs). Notably, both independent and domestic institutions have the same firm selection criteria. As for the institutions' favorite industries for investment, only grey institutions prefer the power industry and QFIIs prefer manufacturing industry. In addition, all four types of institutional investors have different industrial favorites in the four economic regions in China under the regional industrial development policy. For example, independent institutions prefer the information industry and grey institutions appear to be interested in every industry. Moreover, domestic institutions prefer the manufacturing and information industries, whereas QFIIs prefer the manufacturing industry. Regarding the regional participation of institutions, both domestic institutions and QFIIs seem to focus on every region. Moreover, independent institutions focus on the eastern and western regions, whereas grey institutions only focus on the western region. Finally, domestic institutions received the greatest level of support, followed by grey and independent institutions, whereas the QFIIs receive the least support. Put simply, domestic institutions are deeply engaged in industrial development all over China, whereas QFIIs are only slightly engaged in this development.

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Section: Do Firm-level Characteristics and Regional Industrial Develosupporting

confidence: 78%

Sustainable Returns: The Effect of Regional Industrial Development Policy on Institutional Investors’ Behavior in China

Lin

Jun

et al. 2018

Sustainability

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“…In addition, financial performance is likely revealed by financial statements. Ni, Liao, and Huang (2017) claim that corporate governance and financial performance are related to the shareholding change of foreign institutions. Besides, the financial risk of a firm may decline if the firm has a relatively high current ratio (Borokhovich et al, 2004).…”

Section: Corporate Governance Financial Statements and Institutionamentioning

confidence: 99%

“…Davis (2002) claimed that the proportions of equity held by institutional investors are rising across all OECD countries. While in the emerging markets, institutional investors contribute 30% of total market capitalization in India stock markets (Guha, 2018) as well as about 40% share outstanding held by foreign institutional investors in the Taiwan Stock Exchange (Ni, Liao, & Huang, 2017). To sum up, in many countries, institutional investors have become dominant players in the financial markets (Gillan & Starks, 2003;Lemma et al 2018).…”

Section: Introductionmentioning

confidence: 99%

Does “Resetting” by Changing Corporate Name or Industry Category Appeals to Institutional Investments?

Huang¹,

Cheng

2020

CMR

Self Cite

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We investigate whether firms changing their names or industry categories once and more than once would affect institutional shareholdings. By utilizing 5,733 observations of the Taiwan Stock Exchange listed firms, we apply multiple regression models firstly and Petersen regression models for further investigation to enhance the robustness of the empirical results. We then disclose several important findings as follows. First, institutional investors might not prefer holding the shares of the firms changing their names more than once. We infer that the performances of the firms changing names more than once might be doubtful. Second, institutional investors might decrease the shareholdings of the firms with industry categories changed. We claim that institutional investors might suspect these firms probably existing corporate governance issues. Besides, we argue that, to our best understanding, this study might fill the gap in the existing literature due to that the issues, firms changing their names or industry categories once or more than once, seem rarely explored in the relevant studies.

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“…Referring to Ni et al (2017), professional ethics, ethical value, and professionalism are applied to measure accounting education in this study. Lew & Wu (2013) indicated that the real value of a company could not be determined with traditional accounting standards, where tangible asset-centered and amount-emphasized enterprise evaluation model could not completely estimate the true value of high-technology and high value-added industries.…”

Section: Contribution Of This Paper To the Literaturementioning

confidence: 99%

“…(2) Accounting Education Referring to Ni et al (2017), professional ethics, ethical value, and professionalism are applied in this study to measure Accounting Education.…”

Section: Definition Of Research Dimensionmentioning

confidence: 99%

Effects of Corporate Governance on Accounting Education and Enterprise Value in High-Tech Industry

Jiang

Zhang

2017

EURASIA J MATH SCI T

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Corporate governance, an important study on enterprise operation and management, aims to have an enterprise effectively supervise organizational activity and operation through favorable management and supervision systems or mechanisms. When a company presents sound corporate governance, the managers would maximize corporate value and shareholders' equity to enhance the business performance and corporate value.Listed high-tech industries in Shanghai are sampled for this study. The data are acquired from China Economic and Financial Research Database. The research results conclude 1.significantly positive correlations between corporate governance and Accounting Education, 2.remarkably positive correlations between Accounting Education and enterprise value, 3.notably positive correlations between corporate governance and enterprise value, and 4.mediation effects of Accounting Education between corporate governance and enterprise value. The results could provide reference for managers in domestic high-tech industries making investment decisions and governmental authorities formulating relevant regulations. Good match with corporate governance allows a company thoroughly developing the benefit of capital expenditure to further create higher corporate value.

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Foreign Institutional Investors, Shareholding Change, and Corporate Governance

Cited by 9 publications

References 61 publications

Sustainable Returns: The Effect of Regional Industrial Development Policy on Institutional Investors’ Behavior in China

Sustainable Returns: The Effect of Regional Industrial Development Policy on Institutional Investors’ Behavior in China

Does “Resetting” by Changing Corporate Name or Industry Category Appeals to Institutional Investments?

Effects of Corporate Governance on Accounting Education and Enterprise Value in High-Tech Industry

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