Foreign Ownership and Stock Return Volatility in Vietnam: the Destabilizing Role of Firm Size

To, Anh Tho; Suzuki, Yoshihisa; Vuong, Ngoc Bao; Tran, Quoc Tuan; Do, K.D.

doi:10.15388/omee.2019.10.18

Cited by 5 publications

(13 citation statements)

References 46 publications

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“…In addition, we found a negative link between firm size and risk. This may be because large companies, which enjoy better governance and less information asymmetry, tend to control the volatility of stock returns [57]. This negative relationship was also found by Damanpour [58] who argues that large companies better control fluctuations in stock prices.…”

Section: Corporate Governance -Recent Advances and Perspectivesmentioning

confidence: 66%

Board Gender Diversity and Firm Risk

Achour¹

2022

Corporate Governance - Recent Advances and Perspectives

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In this chapter, we address the following question: Does board gender diversity affect global risk? Drawing on agency theory, upper echelon theory, and human capital theory, we hypothesize that gender diversity on the board of directors will decrease the volatility of firm risk. Applying fixed effect estimation on a panel data of listed French companies (SBF120) for the years 2011–2018, the results show a negative link between the percentage of female directors on the board and the standard deviation of monthly stock return as firm risk proxy suggesting that the inclusion of more women on corporate boards could improve financial stability. Our findings contribute to the literature by providing empirical evidence from France occupying the first place at the European level with the most female presence on the boards of directors.1

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Section: Corporate Governance -Recent Advances and Perspectivesmentioning

confidence: 66%

Board Gender Diversity and Firm Risk

Achour¹

2022

Corporate Governance - Recent Advances and Perspectives

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“…Social media platforms make obtaining information cheap and easy. The dynamic network effects of social media help reach a potential group of investors that were not easily reachable through traditional media, as highlighted by To et al (2019).…”

Section: Resultsmentioning

confidence: 99%

Can social media visibility affect institutional ownership and trading consensus on sharia stocks?

Shibghatalloh,

Wahyudi,

Setyorini

et al. 2023

JIAFR

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Purpose - This study aims to examine the effect of Instagram users’ responses to corporate Instagram post (Likes and Comments) toward trading consensus and institutional ownership of sharia stocks in Indonesia.Method - This study used purposive sampling technique. The number of samples in this study were 158 companies registered in ISSI (Indonesia Sharia Stock Index) and having an active Instagram account. Data processing using SPSS.26 with Ordinary Least Square (OLS).Result - The results showed that Instagram users’ responses increased the institutional investor and individual investor in sharia stock. The interpretation for this findings that such Instagram activities increase the visibility of the company across a more diverse group of investors. This increase visibility makes information more accessible to individual and institutional investors, so that they are attracted to invest more in sharia stock.Implication - Sharia issuer companies should also use social media to provide valid information to potential investors. So that it can be one of the foundations of investors in choosing Islamic stocks.Originality - This research is the first study that used social media to measure sharia stock ownership.

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“…Regarding the prior literature on Vietnamese firms, there are a limited number of studies on the nexus between foreign ownership and the price volatility of financial firms in Vietnam. To our best knowledge, all existing literature on Vietnamese firms conclude that an increasing foreign ownership status induces a negative impact on stock return volatility [6,8,11] , implying that the market seems to be more stable with the active participation of foreign investors. Specifically, Vo [11] investigating the case of an developing ecnomy by using a detailed panel data set of firms listed on stock exchange for the period from 2006 to 2012 showed that firm ownership by foreign investors decreased firm stock price volatility in the Vietnam stock market.…”

Section: Literature Reviewmentioning

confidence: 99%

“…This raises a concern to identify factors affecting the volatility of those influential stocks. Foreign ownership has been considered as one of the factors impacting stock return volatility recently stated by many authors [1][2][3][4][5][6][7][8][9][10][11][12] .…”

Section: Introductionmentioning

confidence: 99%

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Impact of foreign ownership on stock return volatility of financial firms in Vietnam

Pham Le,

Ngo

2024

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The paper investigates the impact of foreign ownership on the stock return volatility of financial firms in Vietnam. Applying panel regression models on a year-end research sample of 23 banks and financial firms listed on stock exchanges in Vietnam from 2017 to 2022, the study assures the negative relationship between foreign ownership and the stock return volatility, implying that increasing foreign ownership reduces the volatility of stock returns of financial firms. Our study’s novelty is reflected in following aspects. First, our study, examining about the foreign ownership's impact on stock returns’ volatility in emerging stock market conditions, will enrich this research field by contributing additional empirical evidence to the field through a concrete and well-designed research. Additonally, our research findings not only provide useful information about the volatility of those influential shares in mentioned industries coupled with its determinants but also support investors and policymakers in making investment decisions informedly as well as reviewing suitable regulations for investors and capitals from foreign countries, which is a critical aspect in helping Vietnam's stock market to expand more steadily and sustainably.

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Foreign Ownership and Stock Return Volatility in Vietnam: the Destabilizing Role of Firm Size

Cited by 5 publications

References 46 publications

Board Gender Diversity and Firm Risk

Board Gender Diversity and Firm Risk

Can social media visibility affect institutional ownership and trading consensus on sharia stocks?

Impact of foreign ownership on stock return volatility of financial firms in Vietnam

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