Foreign investors and corporate governance in Korea

Kim, In Joon; Eppler-Kim, Jiyeon; Kim, Wi Saeng; Byun, Suk Joon

doi:10.1016/j.pacfin.2010.04.002

Cited by 83 publications

(72 citation statements)

References 39 publications

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“…Thus, foreign investors avoid investing in firms with poor corporate governance structures and inadequate disclosure practices. Kim et al (2010) examined the impact of poor corporate governance on equity participation of foreign investors. The results indicated that foreign equity ownership is negatively associated with firms' ownership concentration but is positively associated with firms' efforts for better corporate governance.…”

Section: Literature Reviewmentioning

confidence: 99%

Corporate Governance and Non-Jordanian Share Ownership: the Case of Amman Stock Exchange

Suwaidan¹,

Abed²,

Al-Khoury³

2013

IJBM

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In many countries institutional investors have become dominant players in the financial markets. This paper aims to examine whether better corporate governance practices increase attractiveness of Jordanian shares for foreign investors. In order to achieve the above objective a sample of 183 company listed on the Amman Stock Exchange for the year 2010 is employed. The results reveal that institutional ownership, ownership concentration, total assets and audit size are related to non-Jordanian investor. This result builds on the importance of non-Jordan shareholders in enhancing corporate governance mechanism.

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Section: Literature Reviewmentioning

confidence: 99%

Corporate Governance and Non-Jordanian Share Ownership: the Case of Amman Stock Exchange

Suwaidan¹,

Abed²,

Al-Khoury³

2013

IJBM

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“…Studies have shown that foreign investments are positively related to corporate governance (e.g., Dahlquist and Robertson 2001;Dahlquist et al 2003;Kim et al 2010) and foreigners invest significantly less in firms that are poorly governed (Leuz et al 2009). It is argued that an economy is conducive for foreign investments if proper rules and regulations are in place and legal enforcement is carried out by the authority.…”

Section: Introductionmentioning

confidence: 99%

Board attributes and foreign shareholdings in Malaysian listed firms

2014

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This study examines the association between foreign shareholdings and several characteristics of board of directors in the context of a developing capital market. Using data of 777 listed firms on Bursa Malaysia for the financial year 2008, the study predicts that foreign shareholdings are positively related to board independence, multiple directorships, and financial literacy of the board of directors. The study finds a strong positive relationship between multiple directorships and foreign shareholdings. Contrary to our expectation, the association between board financial literacy and foreign shareholdings is negative and significant. With regard to the link between board independence and foreign shareholdings, we find weak evidence to support our prediction that there is positive relationship between board independence and foreign shareholdings. The multivariate results also show strong positive relationships between foreign shareholdings and number of foreign directors on boards, and between foreign shareholdings and audit quality. The study also documents a significant negative association between foreign shareholdings and firm size, and between foreign shareholdings and book-to-market ratio. The findings of the study supports the view that multiple directorships is an important asset to firms in emerging markets partly due to limited pool of potential talents and experts

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“…Another strand of literature explores the link between foreign ownership and corporate governance. Covrig, De Fond and Hung (2007), Leuz, Lins and Warnock (2009) and Kim, Eppler-Kim, Kim and Byun (2010), among others, find that firms with strong governance indicators attract more equity participation from foreign investors. The latter have been found by Ferreira and Matos (2008) to engage in monitoring firms worldwide and thus reduce agency risk.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 95%