Trading of foreign investors and stock returns in an emerging market - Evidence from Vietnam

Vo, Xuan Vinh

doi:10.1016/j.irfa.2017.05.007

Cited by 35 publications

(24 citation statements)

References 47 publications

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“…The conflict between the principals (shareholders) and the agents (managers) is deemed to be inevitable. This might create unique characteristics in emerging markets and widely cited in many studies [18][19][20][21][22][23][24][25]. Jensen and Meckling [26] connect it to the actions of management as they veer off course when they make decisions that benefit them more than the shareholders; in other words, they intend to maximize their personal benefits at the cost of shareholders' wealth.…”

Section: Theoretical Framework (Agency Theory Perspective)mentioning

confidence: 99%

The Strength of CEOs’Influence on CSR in Chinese listed Companies. New Insights from an Agency Theory Perspective

et al. 2020

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This study examined the strength of CEOs’ influence on CSR in Chinese listed companies. The companies chosen belonged to the non-financial sector and were listed in the Shanghai stock exchange from 2010 to 2019. The data was extracted from audited annual reports of companies including the director’s report, chairman’s statements, and notes to financial statements. We applied OLS regression as a baseline methodology to determine the extent and impact of CEO power on CSR disclosures. The results indicated significantly negative relationship between the CEOs’ power and CSR disclosure. Our results showed that separate roles of chairman and CEO can reduce agency problems and increase the CSR disclosures. This study is of importance for regulators, as it enforces the view that regulators and policymakers should continue efforts to improve corporate governance practices and CSR reporting in China, as these changes will not only improve the performance of companies but also befit society at large.

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Section: Theoretical Framework (Agency Theory Perspective)mentioning

confidence: 99%

The Strength of CEOs’Influence on CSR in Chinese listed Companies. New Insights from an Agency Theory Perspective

et al. 2020

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“…The VAR model is commonly used by studies that investigate the relationship between investors' trading behavior and security prices (e.g. Richards, 2005;Vo, 2017). The following VAR model is estimated:…”

Section: Empirical Methodologymentioning

confidence: 99%

Investor behavior, stock returns and CDS spreads: evidence from foreign and domestic investors in Korea

Yang

Samitas

Kampouris

2020

IJMF

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PurposeThis study investigates the dynamic relationships among trading behaviors of different investor groups (foreigners, domestic institutions and domestic individuals), stock returns and sovereign CDS (Credit Default Swap) spreads in Korea.Design/methodology/approachWe employ the VAR (Vector autoregression) model to examine the dynamic relationships between CDS spread changes, stock returns and investors' behavior in the stock market.FindingsThe CDS spread change (stock return) declines (rises) in response to shocks to net foreign flows into the stock market on the same day. Foreigners buy stocks more intensely one day after an increase in the stock return, but they do not respond to CDS spread changes. Domestic individuals trade in the opposite direction of foreigners in response to shocks to both stock returns and CDS spread changes on the same day. Positive net stock purchases of domestic institutions (individuals) predict positive (negative) stock returns and negative (positive) CDS spread changes next day.Originality/valueThis study extends prior studies by examining how different investor groups' trading behaviors in the stock market are associated with not only the stock market but also a closely related market (CDS market). Prior empirical studies on the relation between the stock and CDS markets do not pay attention to possible heterogeneity in trading behavior across different types of investors in the stock market.

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“…International portfolio diversification is an investment strategy used to reduce portfolio risk to any particular financial market and reduce the volatility of returns (Vo, 2017, 2018a, 2018b, Vo & Ellis, 2018Vo et al, 2017;Vo & Tran, 2020). Foreign investors are looking to diversify their portfolio in emerging markets equities also provide significant benefits for firms in these markets (Vo, 2018c(Vo, , 2019Vo & Chu, 2019).…”

Section: Introductionmentioning

confidence: 99%

The impact of BRICS formation on portfolio diversification: Empirical evidence from pre- and post-formation eras

Al-Mohamad

Khaki

Bakry

et al. 2020

Cogent Economics & Finance

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Trading of foreign investors and stock returns in an emerging market - Evidence from Vietnam

Cited by 35 publications

References 47 publications

The Strength of CEOs’Influence on CSR in Chinese listed Companies. New Insights from an Agency Theory Perspective

The Strength of CEOs’Influence on CSR in Chinese listed Companies. New Insights from an Agency Theory Perspective

Investor behavior, stock returns and CDS spreads: evidence from foreign and domestic investors in Korea

The impact of BRICS formation on portfolio diversification: Empirical evidence from pre- and post-formation eras

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