Foreign Investors, Corporate Operational Efficiency and Performance

Abstract

Using data envelopment analysis, this article examines the influence of foreign investors on corporate operational efficiency and performance. This study identifies a significant correlation between corporate operational efficiency and foreign investment shareholding ratios. Corporate operational efficiency plays a mediating role between foreign investors and performance. When foreign shareholdings achieve a stable and mature stage, the long-term foreign investment shareholding stock facilitates the enhancement of operational efficiency, whereas short-term shareholding variation levels create pressure or monitoring and disciplinary effects for corporate operations. Overall, in Taiwan market, foreign investors could have spillover effects on listed companies and raise their efficiency and performance.