Foreign investor behavior in Korea after the 1997 Asian financial crisis

Joe, Denis Yongmin; Oh, Frederick Dongchuhl

doi:10.1016/j.jjie.2017.10.002

Cited by 5 publications

(4 citation statements)

References 28 publications

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“…Moreover, foreign investors had much more difficulty accessing firm-specific information for KOSPI because of their physical and linguistic barriers. Joe and Oh [9] investigated the behavior of foreign investors in the Korean stock market after the 1997 Asian financial crisis (1999)(2000)(2001)(2002)(2003)(2004)(2005)(2006)(2007)(2008)(2009)(2010)(2011)(2012)(2013)(2014). The authors analyzed the industrial distribution of foreign ownership.…”

Section: Literature Reviewmentioning

confidence: 99%

“…The authors analyzed the industrial distribution of foreign ownership. Joe and Oh [9] insisted that foreign investors showed a preference for large, profitable, highly liquid, and growth firms, as well as those with large boards. However, Chaebol (Korean conglomerates) firms were not attractive to foreign investors.…”

Section: Literature Reviewmentioning

confidence: 99%

“…In other words, foreign investors were not blindly purchasing Chaebol stocks (blue chips in KOSPI), and they considered many financial factors in stock purchase. In the end, the authors of Reference [9] insisted that foreign investors achieved success as financial investors in Korea.…”

Section: Literature Reviewmentioning

confidence: 99%

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The Impact of Foreign Investors on the Stock Price of Korean Enterprises during the Global Financial Crisis

Kim

2019

Sustainability

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This paper investigates the impact and behavior of foreign equity investment on the price of the nine largest KOSPI (Korea Composite Stock Price Index) enterprises and Samsung Electronics preference stocks in terms of market capitalization during the global financial crisis (2 January 2007 to 30 December 2008). The empirical results indicate that foreign investors show strong, positive feedback trading behavior with regard to the stock price of Samsung Electronics, which is the largest KOSPI enterprise in terms of market capitalization. We also found evidence that the behavior of foreign investors significantly increased volatility in the stock returns of the two largest Korean conglomerates (Samsung Electronics and Hyundai Motors), which account for approximately 25 percent of total KOSPI market capitalization.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

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The Impact of Foreign Investors on the Stock Price of Korean Enterprises during the Global Financial Crisis

Kim

2019

Sustainability

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“…Foreign institutional investors are important for firms because they not only provide the financial resources to the firms but also mobilize skills and knowledge from their home countries (Ferreira et al 2010;Gillan and Starks 2003) and improve firm performance by reducing stock price volatility (Vo 2015). Given the importance of foreign institutional investors for firms, much literature has used stock attributes, firm characteristics (Cai et al 2019;Joe and Oh 2017;Lee and Ryu 2019;Neupane et al 2016), and board composition to identify the determinants of foreign institutional investment (Abdioglu et al 2013;. However, most of these studies are conducted in technologically advanced countries (Kang and Stulz 1997) and lack board diversity as a determinant of foreign investment .…”

Section: Introductionmentioning

confidence: 99%

Does Board Diversity Attract Foreign Institutional Ownership? Insights from the Chinese Equity Market

Ali

Rehman

Ahmad

et al. 2021

JRFM

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The study aimed to empirically investigate the impact of board diversity variables (age, gender, nationality, education, tenure, and expertise) on the investment preferences of foreign institutional investors in an emerging market, China. For this, sample data consisted of 1374 nonfinancial Chinese firms from 2009 to 2018. The study used OLS regression as a baseline regression, a fixed effect model to control omitted variable bias, and the two-step systems GMM model to control the endogeneity problem. The study revealed that board diversity variables (gender, nationality, education, and financial expertise) are positively associated with foreign institutional ownership in Chinese nonfinancial firms, implying that foreign institutional investors own a high percentage of Chinese nonfinancial firms with diversity of gender, nationality, education, and financial expertise. Age and tenure of board diversity, on the other hand, have little correlation with foreign institutional ownership. Further, the robustness regressions also confirmed the relationship between board diversity and foreign institutional ownership. This study made a unique attempt to provide empirical evidence that firms having diverse boards attract foreign institutional ownership by reducing asymmetric information.

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Do foreign investors make firms more transparent? Evidence from Korea

Lee,

2024

Journal of Multinational Financial Management

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Foreign investor behavior in Korea after the 1997 Asian financial crisis

Cited by 5 publications

References 28 publications

The Impact of Foreign Investors on the Stock Price of Korean Enterprises during the Global Financial Crisis

The Impact of Foreign Investors on the Stock Price of Korean Enterprises during the Global Financial Crisis

Does Board Diversity Attract Foreign Institutional Ownership? Insights from the Chinese Equity Market

Do foreign investors make firms more transparent? Evidence from Korea

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