Foreign Share Research Articles

Free licensing strategy and ex-post privatization policy with passive ownership

This study considers a free licensing strategy with passive ownership and investigates the interaction with ex-post privatization policy in a mixed oligopoly where free licensing can be announced before the government selects its optimal degree of privatization. We examine and compare foreign and public licensors and explore the relationships between the foreign share of passive ownership in domestic firms and the incentive of free licensing strategies. We show that free licensing strategies always yield more privatization and higher welfare. By contrast, free licensing between the foreign and public licensors depends on the share of passive ownership and technology gap. We further consider open technology and fee licensing strategies and provide contrasting findings on the optimal degree of privatization and welfare consequences.

Fiscal Multipliers and Foreign Holdings of Public Debt

AbstractThis article explores a natural connection between fiscal multipliers and foreign holdings of public debt. Although fiscal expansions can raise domestic economic activity through various channels, they can also have crowding-out effects if the resources used to acquire public debt reduce domestic consumption and investment. These crowding-out effects are likely to be weaker when governments have access to foreign savings when selling their debt, leading to larger fiscal multipliers. We test this hypothesis for the U.S. in the post-war period and for a panel of 17 advanced economies from the 1980s to the present. To do so, we assemble a novel database of public debt holdings by domestic and foreign creditors for these countries. We combine these data with standard measures of fiscal policy shocks and show that, indeed, the size of fiscal multipliers is increasing in the share of public debt held by foreigners. In particular, the fiscal multiplier is smaller than one when the foreign share is low, such as in the U.S. in the 1950s and 1960s and Japan today, and larger than one when the foreign share is high, such as in the U.S. and several European countries today.

DETERMINASI TRANSFER PRICING PADA PERUSAHAAN MANUFAKTUR DI INDONESIA

This study aims to determine the effect of income tax, tunneling incentive, and debt covenant on transfer pricing indications. The research population uses manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2015-2019. The sampling technique was carried out by purposive sampling method. The study used 105 observational data. Logistic regression is a data analysis technique used in this study. The results of the study show that there is an effect of tunneling incentive, which is measured by the amount of foreign share ownership that exceeds 20% on transfer pricing. However, this study cannot prove the effect of income tax, as measured by the different box tax and debt covenants, as measured by the debt to equity ratio on transfer pricing.

Prospect theory and stock returns: Evidence from foreign share markets

Exploiting an exogenous regulatory shock in a foreign share market, we investigate its impacts on ownership structure and investor behaviors, and assess the ability of prospect theory to explain these behaviors and stock prices. We find that prospect theory values have strong predictive power for returns in the B-share market after the reform that attracts large inflows of individual investors. Changes in predictive power are driven by the probability weighting component in prospect theory value, reflecting the “lottery-type” demand of these individual investors. Results provide direct evidence that individual investors are prone to the mental presentation effect when evaluating risk.

The Effect of Foreign Share Changes on BİST Sector Indices in Borsa Istanbul

Ülkelerin ekonomik büyümeleri için doğrudan yabancı yatırımlar reel sektör için önemli iken, hızlı bir finansal gelişmeyi sağlayan yabancı portföy yatırımları da finansal piyasalar için gereklidir. Yabancı portföy yatırımları sermaye piyasalarını etkileyerek, borsaya olan güveni ve özellikle gelişmekte olan ülkeler için hızlı bir ekonomik büyüme sağlayabilmektedir. Bu yüzden gelişmekte olan ülkeler yabancı yatırımcıyı sermaye piyasalarına çekmek istemektedir. Bu çalışmanın amacı Borsa İstanbul’da seçilen sektörler bazında aylık yabancı pay oranındaki değişimin BIST sektör endeksleri üzerindeki etkisini incelemektir. Sektör endekslerinin yabancı pay oranındaki değişimi ile ilişkisini tespit etmek için Granger ve Toda Yamamoto nedensellik analiz yöntemleri kullanılmıştır. Sonuç olarak seçilen 6 sektörde yabancı pay oranı yüksek olsa da sanılanın aksine yabancı paydaki değişimin mali ve bankacılık sektörleri hariç olmak üzere sektör endeksleri üzerinde bir nedensellik etkisinin olmadığı, sektör endekslerindeki değişimin yabancı pay oranındaki değişime bağlı olmayıp Borsa İstanbul’un kendi iç dinamik ve diğer faktörlerin etkisinden kaynaklandığı tespit edilmiştir.

Spatial variation in populist right voting in Austria, 2013–2017

The recent wave of populism sweeping Europe and the Americas generated considerable interest among political scientists, economists, sociologists and to some extent, geographers. The vast majority of these studies focuses on individual voter decisions or national comparisons over time but neglects the within-country spatial variation of the populist vote. This paper addresses this shortcoming and applies spatial econometric techniques to explore possible explanations for spatial variation in the increase of the populist right vote between the 2013 and 2017 national elections in Austria for 2118 municipalities. Spatial variation in voting shares can result from (1) compositional effects, regional differences in the composition of voters with different characteristics, (2) broad spatial, historically evolved institutional differences, such as membership to one of the nine states, (3) unequal integration of different types of regions into the global economy, such as peripheral regions, central urban regions, old industrial regions or tourist areas, (4) spatial vote spillovers due to localized social networks, and (5) unobserved spatial processes. We find that the populist right vote gains in Austrian municipalities are affected by all processes, but that the type of regions becomes insignificant once we correct for unobservable spatial structures in the regression framework. The increase in the share of foreigners, the share of foreigners, income and inequality levels, educational differences, selected state membership, as well as spatial spillovers of populist right voting are all important to explain spatial variation in the rise of the populist right vote.

Enfranchising non-citizens: What drives natives’ willingness to share power?

Universal suffrage is a core element of democracy. However, in many democratic countries, a large part of the inhabitants are foreigners without suffrage. We analyze the conditions under which domestic citizens are willing to extend suffrage to non-citizen residents. This paper explores a new panel dataset (1992–2016) of Swiss referenda on the enfranchisement of non-citizens. We concentrate on the size and composition of the foreign population and the institutional context as determinants of non-citizens’ enfranchisement. Our estimates show that a higher share of foreigners corresponds to a lower willingness of natives to enfranchise non-citizens. This effect seems to be driven by the cost of enfranchising non-citizens, which increases in the cultural distance between the foreign and native population and the strength of direct democracy.

OWNERSHIP OF A DENTAL OFFICE AS A FACTOR OF DENTAL TOURISM IN THE REPUBLIC OF NORTH MACEDONIA

Dental tourism is considered as part of medical tourism and means travel abroad in order to receive dental services, which are usually more expensive in the home country. The Republic of North Macedonia with its geographical location is a current European destination for dental tourism. The study aimed to indicate certain experiences in the field of dental tourism in the Republic of North Macedonia according to the ownership of a dental office. This was a cross-sectional study conducted in the period from 15.02.2018 to 14.02.2019. The sample consisted of 215 dentists. A non-standardized questionnaire was used and applied with the Google Forms service. The responses of 215 dentists were analyzed; 131 (60.93%) were owners of a dental office and 84 (39.07%) were not owners of a dental office. There was no significant association between the ownership of a dental office and years of experience in working with foreigners, for Pearson Chi square = 5.05 and p> 0.05 (p = 0.28). There was a significant association between the ownership of a dental office and the statement of the share of foreigners in the total income of the office, for Pearson Chi square = 9.47 and p <0.05 (p = 0.04). A negative correlation was found between the answers to the analyzed questions and the number of dentists, depending on the ownership of the office. Keywords: dental tourism, ownership, dental office. https://doi.org/10.55302/JMS2143154p

Can foreign ownership reduce bank risk? Evidence from Vietnam

This study investigates the impact of foreign ownership on bank risk in Vietnam between 2006 and 2015. Our findings show that foreign ownership can lower bank risk, suggesting that the State Bank of Vietnam should further remove restrictions on foreign investments in the banking system. The findings also indicate that higher bank risk is associated with greater technical efficiency, suggesting that the skimping-cost hypothesis may exist. The same conclusion is true for large banks, for banks with higher liquid assets, and those with greater loan growth. More interestingly, we do find evidence that state-owned banks with a greater level of foreign share are likely more stable. This is also true for the case of listed banks with a higher level of foreign ownership.

Determinasi Tingkat Pengungkapan Laporan Keuangan

This study aims to determine the effect of company size, leverage, liquidity, earnings management, ceo duality, quality of directors and foreign share ownership on the level of financial statement disclosure. The data used in this study are secondary data. The method used for sample selection was purposive sampling. The number of samples in this study were 96 companies. Hypothesis testing in this study was carried out using the t statistical test. The data analysis technique used in this study is multiple linear regression analysis and moderated regression analysis using the statistical product and service solution (SPSS) version 20.0 for windows data processing software program. The results of this study indicate that company size, liquidity, ceo duality, and quality of directors have a significant effect on the level of financial statement disclosure. Meanwhile, leverage, earnings management and foreign share ownership have no effect on the level of financial statement disclosure

Power sharing at the local level: evidence on opting-in for non-citizen voting rights

The enfranchisement of foreigners is likely one of the most controversial frontiers of institutional change in developed democracies, which are experiencing an increasing number of non-citizen residents. We study the conditions under which citizens are willing to share power with non-citizens. To this end, we exploit the setting of the Swiss canton of Grisons, where municipalities are free to decide on the introduction of non-citizen voting rights at the local level (a so called opting-in regime). Consistent with the power dilution hypothesis, we find that enfranchisement is less likely when the share of resident foreigners is large. Moreover, municipalities with a large language/cultural minority are less likely to formally involve foreigners. In contrast, municipality mergers seem to act as an institutional catalyst, promoting democratic reforms. A supplementary panel analysis on electoral support for an opting-in regime in the canton of Zurich also backs the power dilution hypothesis, showing that a larger share of foreigners reduces support for an extension of voting rights.

THE EFFECT OF FOREIGN DIRECT INVESTMENT SPILLOVER ON THE LEVEL OF TECHNICAL EFFICIENCY IN LARGE AND MEDIUM MANUFACTURING INDUSTRY IN EAST JAVA

Foreign Direct Investment (FDI) takes an important role in the development process, especially in developing countries. The purpose of this study is to examine and analyze FDI spillover on the level of technical efficiency in the large and medium manufacturing industry in East Java. This study uses a time-varying stochastic frontier approach for firm-level panel data of the East Java manufacturing industry. The results show that all factors in this study affect the level of technical efficiency of large and medium industries in East Java. Variable foreign share, FDI horizontal spillover, and firm size have a positive influence on the technical efficiency of the industry. Whereas the variable FDI backward spillover, FDI forward spillover and the level of market concentration negatively affect the level of technical efficiency of the industry. Finally, it’s needed to build synergies and sustainable relationships between products produced by domestic and foreign firms. Thus, the presence of foreign firms in East Java could have a positive impact on improving the technical efficiency of the domestic industry both at the upstream and downstream levels. Keywords: Foreign Direct Investment Spillover, Technical Efficiency, East Java IndustryJEL Classification: F21, L60, D24

Pengaruh Pajak, Tunneling Incentive, Dan Good Corporate Governance Terhadap Transfer Pricing

This research aimed of the study was to determine the effect of tax, tunneling incentive and good corporate governance (GCG) on transfer pricing. Transfer pricing was measured using related party transaction (RPT). Manufacturing companies at the Indonesian Stock Exchange (IDX) period 2013-2017 were used as research totaling 25 companies, and the samples was taken by purposive sampling method. The analysis technique used was a binary logistic regression. This result of this research showed that tax measured using effective tax rate (ETR) had positive effect on transfer pricing, and good corporate governance measured using a general audit committe had negative effect on transfer pricing, while tunneling incentive measured using ownership of foreign share capital more than 20% had no effect on transfer pricing.

SELF-EMPLOYMENT OF FOREIGNERS AS AN INNOVATIVE SOLUTION ON THE LABOR MARKET IN THE EUROPEAN UNION

The main aim of this article is to identify certain specificity in self-employment of foreigners in EU countries and to find out whether the differences in self-employment of foreigners between countries are diminishing. Within the main objective, we have set two sub-objectives. The first sub-objective is to compare EU countries on the basis of the following indicators: 1/ number of self-employed foreigners and 2/ share of self-employed foreigners in employed persons from foreign countries. The second sub-objective is to determine whether EU countries converge in the number of the share of self-employed foreigners in the number of employed persons from foreign countries. We have confirmed that the countries have a tendency to convergence in regard to the share of self-employed foreigners in employed persons from foreign countries. We assume that this tendency can also be due to the pressure of the labour market that shows a lack of labour force. The share of self-employed migrants is relatively high in Eastern Europe. On the other hand, their increase is below average compared to the EU.

The Impact of Foreign Investor Ownership Level on Agency Problems of Manufacturing Companies in Indonesia

Research aims : Investment plays an essential role in the business growth of a company and the economy to develop more broadly. The role makes each institution implement investment targets and takes all actions to support the realization of investment targets. This study proves that foreign investors can change the investment behavior of companies and the interaction among decisions. Design/Methodology/Approach : The study used a dynamic panel data analysis method based on the financial statements of 100 manufacturing companies listed on the Indonesia Stock Exchange (IDX). Research findings : Increasing foreign ownership does not always reduce agency problems. The analysis shows that the level of share ownership of foreign investors changed the company’s investment behavior. These results indicate that there are different agency problems in different ownership level of foreign investors. Theoretical contribution/Originality : This study provides a new perspective and empirical evidence that the relationship between agency problems and foreign share ownership is not static. Practitioner/Policy implication : This study analyzes the effect of the composition of foreign investors on the allocation of corporate funds by investigating capital asset investment and current asset investment interactions. This research contributes to the firm's ability to control its own goals. Research limitation/Implication : This research has not considered the company's risk characteristics related to the type of industry. For further research development, it is necessary to consider the company's risk characteristics to enhance the analysis.

Борьба с «немецким засильем» и создание норм «ликвидационного права» в Российской империи в годы Первой мировой войны

The article sets out the goal of analyzing Russian legislation from the period of 1914 –1917. The relevance of the work is caused by the fact that in modern historiography there is no single view on the formation and composition of the legal framework of the so-called «liquidation legislation». This is due to the fact that researchers study typically three different groups of regulations: firstly, it is a struggle against foreign land tenure and land use in Russia; secondly, the struggle against foreign share capital, and thirdly, the struggle against the right to own and manage enterprises that then functioned in Russia and belonged to «enemy subjects» and «immigrants from hostile states» by the ownership right. The object of the study in the article was the measures of the emergency legislation of Russia in the framework of which a liquidation company was carried out against foreign enterprises during the First World War. The subject of the study is the activities of the Russian government, expressed in a number of Decrees of the Council of Ministers 1914–1917 which aimed at restricting the subjects` rights of the states warring with Russia. Along with general scientific methods (analysis, synthesis, deduction, induction, etc.), the work uses the problem-chronological method, which made it possible not only to describe the dynamics of the adoption of the norms of «liquidation law», but also to identify the impact on its development of the political situation, the decision-making algorithm of the Russian government in the time period studied. The author concludes that from March 16, 1915 to February 7, 1917, the activities of the Russian government in relation to subjects of the countries hostile to Russia were unskilled and did not comply with the practice of international law. This had a negative impact on the economic activities of the Russian state, which was in difficult conditions of military confrontation with the «Central Powers» bloc during the First World War.

Contacts between Natives and Migrants in Germany: Perceptions of the Native Population since 1980 and an Examination of the Contact Hypotheses

For decades, migration to Germany has been a relevant social phenomenon resulting in an increasing share of foreigners and Germans with migration background in the German populace. Additionally, since 2015, Germany has experienced a substantial increase in the immigration of people seeking refuge and asylum from civil war, economic and environmental catastrophes, and other adverse living conditions. These developments can be assumed to have led to an increase in intergroup contact between Germans and foreigners. We investigate this phenomenon in a multifaceted fashion by combining a social indicator and monitoring approach using repeated cross-sections over time with a new panel approach using a short-time panel to study causal relations. As a first step, we descriptively analyze the development of intergroup contact experiences of the German population with foreigners in various areas of life using data from the ALLBUS survey collected over 36 years between 1980 and 2016. Specifically, we detail the diverging contact experiences of participants with and without migration background as well as participants in the former Eastern and Western part of Germany. In a second step, based on Allport’s intergroup contact theory that contact with outgroup members may improve attitudes towards these outgroups and other related findings, we examine the longitudinal processes between positive intergroup contact with foreigners and attitudes towards foreigners using four waves of the GESIS Panel collected over approximately one and a half years. We apply special rigor to these analyses by differentiating stable differences in intergroup contact experiences and attitudes between participants from within-person processes and discussing the implications of this differentiation.

Which boats are lifted by a foreign tide? Direct and indirect wage effects of foreign ownership

The attraction of foreign direct investment (FDI) is considered to be of particular importance for emerging economies because it represents a channel through which international convergence in standards of living may be achieved. One important effect of FDI is its impact on wages, both within the targeted firm (direct) and the local firms within the same geographic region and sector (indirect). In this paper, we investigate the question whether multinational enterprises (MNEs) raise or lower wages directly and indirectly, both theoretically and empirically. Importantly, the magnitude of these changes may depend on how many firms in the sector are already foreign-owned. Generally, the effect of MNEs on wages has not been studied as intensively in the international business (IB) literature as other aspects of FDI, and ours is the first article to specifically investigate the moderating effect of variation in foreign employment shares across industry–province cells (clusters). Using Chinese data on 146,199 firms, we estimate the direct wage effect of foreign ownership to be positive and to increase with the employment share of foreign-owned firms. We also find that the indirect effect on domestic wages varies with the foreign share and may even turn negative.

Occupational exposure to foreigners and attitudes towards equal opportunities

Abstract We examine the relationship between attitudes to foreigners and the share of foreigners at the occupational level. Using a question on equal opportunities for foreigners from the Swiss Household Panel, ordered probit regression models show a negative association between the share of foreigners in one’s occupation and positive attitudes to foreigners: workers seem to react to competition with foreigners. When we add the occupational unemployment rate, objective pressures in the labour market appear as relevant as contact at the occupational level. Further controlling for occupational heterogeneity establishes that both factors—particularly objective pressures—are probably accounted for by sorting on job quality. We also show that the association between the occupational share of foreigners and attitudes decreases for workers with better job prospects. This implies that workers welcome foreigners to overcome labour market shortages.

Does corporate social responsibility disclosure reduce the information disadvantage of foreign investors?

We examine whether corporate social responsibility (CSR) disclosure affects the valuation decision of foreign investors. Our research is set in China's segmented market where some Chinese firms issue two classes of shares with identical voting and cash flow rights, but with one class traded largely by domestic investors and the other traded largely by foreign investors. The foreign-traded shares trade at a discount to the domestically traded shares. We observe that CSR disclosure is inversely related to the foreign share discount. The relationship is more pronounced among firms with lower analyst or media coverage and those firms operating in more polluted regions. Our research suggests that CSR disclosure reduces the information disadvantage of foreign investors and facilitates cross-border investment.