Presence Of Foreign Investment Research Articles

Board generational diversity in emerging markets

To identify the determinants of the generational diversity of board membership in emerging market firms, we conducted an empirical analysis using state-level social inequality indices and data on 14,598 listed/unlisted firms from 20 Eastern European countries and China. We found that, in these emerging markets, social inequality strongly inhibits the generational diversity of board membership, regardless of the gender of board members. The results also reveal that four firm attributes—board size, CEO duality, state ownership, and the presence of foreign investors from non-advanced economies as firm owners—significantly affect the age composition of board directors in line with our expectations. Two other firm attributes—ownership concentration and firm ownership by foreign investors from advanced economies—are also found to have a significant impact on board generational diversity; however, the direction of their impact contradicts our predictions. Supplementary estimations carried out by introducing various sample restrictions produce similar results, thus confirming the statistical robustness of our findings.

Kapitał zagraniczny na rynku prasowym w regionie podkarpackim w latach 1993–2021: próba bilansu

Companies with foreign capital have been operating on the press market in the Podkarpackie region for 28 years. Initially as minor shareholders, and since 2005 as the sole owners of a publishing house with a key position on the regional market, which published the largest daily Newspaper – Gazeta Codzienna "Nowiny". Foreign investor activity, in the Podkarpackie region went beyond the area of the regional press. The presence of foreign investors also had an impact on the local press market and the development of Internet-related media. Foreign capital also had to face the nationwide trends which were present in region, such as lower sales and the declining importance of the printed press. It seems that in this aspect, along with the growing crisis on the press market, foreign investors instead of taking care of the expense of the quality of published titles, were rather more interested in pursuing their own economic interests.

Foreign bank penetration in Vietnam following Vietnam’s accession to the WTO: matching expectations with reality

Vietnam continuously liberalizes the financial market as a requirement for its accession to the World Trade Organization in 2007. This paper discusses the foreign investors’ expectation and their experience when penetrating into Vietnam’s market. The role of the foreign entrants is also assessed. By synthesizing and analyzing relevant research and reports, several important insights are discovered. Firstly, the presence of foreign investors and banks improves market competition, efficiency, and stability. Wholly and partly foreign-owned banks provide the spillover effects in management quality, in the introduction of world standard banking products and services, and in the application of information technology. Secondly, by looking into the foreign owned banks, it is found that the banks’ foreign investors are not likely to play an influential role in managing the banks they invested in. The motive of the investors to control the invested companies leads to their decision of holdings withdrawing.

Panda Games: Corporate Disclosure in the Eclipse of Search

We show that firms strategically alter their disclosures when investors’ access to information via search engines is interrupted. We conduct a textual analysis and exploit an exogenous event—Google’s 2010 surprising withdrawal from mainland China, which significantly hampered domestic investors’ ability to search for foreign information but did not affect their cost to access domestic information. Following Google’s exit, Chinese firms’ announcements on foreign transactions become more bullish relative to domestic transactions. Optimism in disclosure is especially rosy if the press releases are conveying negative news or are issued by poorly governed firms. This effect is mitigated in the presence of foreign investors or analysts affiliated with foreign brokers who are not subject to foreign information censorship by the government. The increase in search cost also appears to leave domestic news media and financial analysts more vulnerable to the influence of corporate disclosure. These optimistic announcements allow insiders to harvest higher returns from selling their shares and are associated with a higher likelihood of corporate misconduct. This paper was accepted by Gustavo Manso, finance. Funding: This work was supported by the National Natural Science Foundation of China [Grants 71272072 and 71572042]. X. Yu gratefully acknowledges financial support from the Arthur M. Weimer Fellowship. Supplemental Material: The data files and online appendix are available at https://doi.org/10.1287/mnsc.2022.4521 .

DETERMINANTS OF FIRM-LEVEL INNOVATION PERFORMANCE: NEW EVIDENCES FROM ASEAN MANUFACTURING FIRMS

Based on the stakeholder theory, we posit that firms’ innovation, as a strategic choice, is determined by not only firms’ resources but also their pressures from different stakeholders and relationship with the government. Using a dataset of 3,444 firms in seven ASEAN countries, we find that firms’ innovative outputs are positively influenced by export orientation and fierce competition but restrained by the presence of foreign investment. In addition, while strengthening the relationship with government facilitates, the chance to create some types of innovation, could magnify or dampen the effects of those pressures on firms’ innovation. Our findings have useful implications for the firms’ managers to accumulate and spend resources to build up a strong capacity for innovation. For the governments in ASEAN region, they should focus on improving the institutional quality and providing incentives for foreign investments that only bring advanced technologies and spillover effects.

Do Export Activities Improve Small Firm Performance? Evidence from Indonesia

"Research Aims: This study investigates the link between involvement in direct export activities and firm performance, with reference to small and medium-sized enterprises (SMEs) in Indonesia. Design/Methodology/Approach: The study employed primary data collected from questionnaires administered to 271 exporting SMEs in seven provinces in Jawa-Bali Region. The OLS and GLM regression techniques were employed to estimate the export impact model. Research Findings: The results show that export activities bring the highest performance improvement in product quality, moderate improvement in marketing and networking techniques, total sales, total profit, production technique or technology and worker productivity, and least improvement in domestic sales. SMEs' exports-induced performance improvement is positively affected by firm size, owners' education, the presence of foreign investors, and assistance from central government agencies, negatively affected by years of exporting, and shows an inverted U-shaped relationship with export intensity. Theoretical Contribution/Originality: The discourse of firm internationalization theories should not only focus on pre-export activities, but also post-export activities. Further, the discourse on the relationship between firm performance and degree of internationalization should consider non-linear relationship. Managerial Implications in the Southeast Asian Context: SMEs should keep actively participating in the government's export assistance programs in their post-export stage. Especially, exporting SMEs should maintain and strengthen their relationships central government agencies. In order to maintain and expand their export activities, SMEs may consider partnership with foreign investors. Research Limitations and Implications: Future research may investigate the specific export stimuli and export barriers that SMEs encounter in post-export stage. The scope of the study can be expanded to provincial or country comparison in Southeast Asia, taking into account differences in social and economic characteristics, or specified to a particular province/region or product group/industry. Other definitions of SMEs-such as those based on asset or turnover size-might be attempted. Data accuracy may also be improved through the use of factual (quantitative) data to replace some perceptual data used in the current study. "

POTENTIAL CLUSTERS IN BANAT AND THEIR ROLE IN REGIONAL ECONOMIC DEVELOPMENT

The interest in the study of clusters and their role in the economic development of certain regions has constantly grown in the past years. This interest has also been emphasized by the emergence of successful clusters in many regions; these are clusters that have visibly and they have determined the increase in competitiveness of those particular regions. Clusters are geographic gatherings of firms and institutions, connected to each other and specialized in certain fields of activity. In Romania, due to the low cooperation level among enterprises we cannot say that proper clusters exists, but just some “spatial gatherings” of firms activating in certain domains, connected by the need of using certain natural resources and the existence of a specialized workforce in that particular domain. Natural “clusters” can be identified by means of quantitative analyses, these indicating the possibility to identify certain spatial assemblies of firms in a certain economic sector. Starting from these quantitative analyses, for Banat region have been identified some important spatial gatherings of firms activating in certain domains which could represent potential clusters in this area. As clusters function on the principle of cooperation among enterprises, a strong point of the region is the presence of foreign investors which promoted the model of enterprise cooperation through sub-contracting local enterprises. Among these, we mention the Italian investors which brought to Banat, especially to Timi? County the Italian cluster model. Are there in Banat premises for the emergence of clusters? Which are the fields of activity in which these clusters can emerge? What role will these clusters play in the economic development of the region? These are just some of the questions that we aim answering to through this study.

Trade Liberalization, Economic Reforms and Foreign Direct Investment – A Critical Analysis of the Political Transformation in Vietnam

The purpose of this study is to discuss the trends of integration into the global economy since political and economic reforms (so-called Doimoi) and its influence on every presence of foreign investment in Vietnam. Lasting 20-year-war period and ended in 1975, by the mid-1980s per capita income was stuck between $200 and $300, Vietnam’s government introduced Doimoi through a series of reforms, and steered the country to be a socialist-oriented market economy. Based on the analysis of reform process and integration, the results are concerned. Our results demonstrate that foreign direct investment performance has significantly embraced trade liberalization with gusto. Further, the open trade policy in relation to FTAs could significantly promote foreign investment and maximize its benefits on the economy.

Regional Autonomy Policy, State Investment, And Tourism Development in The Border Aruk West Kalimantan Indonesia

Indonesia as a developing country certainly has an interest in capturing opportunities in the current era of globalization, one of which is foreign investment to develop tourism potential. The purpose of this study is to analyze the correlation in regional autonomy policy on foreign investment and border tourism development in Aruk, West Kalimantan. The method used in this research is descriptive method with a qualitative approach. The results of this study indicate that there is a correlation between regional autonomy policy, increased attractiveness of foreign investors in increasing tourism development. The correlation is found in the presence of foreign investors which is strongly influenced by the internal conditions of a country, namely the stability of tourism, state politics, and legal certainty. Besides the obstacles in the development of tourism in the Aruk border is the budget problem and number of investors who do not care about the environmental sustainability of a tourist area.

Does foreign investment enhance domestic manufacturing firms’ labour productivity? Evidence from a quantile regression approach

We provide new insights into the relationship between foreign investment and the labour productivity of domestic firms in the Vietnamese manufacturing industry. Using quantile regression analysis of a panel of firm-level data over a 2010–2015 study period, we find that the presence of foreign investment has a positive impact on domestic firm labour productivity through competition effects within the industry at the middle and high quantiles. We do not find significant evidence to support a positive relationship between foreign investment in downstream sectors and domestic firm labour productivity in upstream sectors, however. There are some indications that suggest a positive relationship between foreign suppliers in upstream sectors and labour productivity of domestic buyers in downstream sectors at the low and middle quantiles.

POLICY OF REGIONAL GOVERNMENT OF MAGELANG REGENCY ON FOREIGN INVESTMENT OF TOURISM

Tourism is one of the sources of Original Regional Revenue that is quite promising, when it is managed professionally. With regard to funds, the presence of foreign investment is a very possible solution. From the collected data, in the Regency of Magelang, the presence of foreign investors in tourism is still very little, while such potential is wide open for development. For this reason, this research is entitled "The Policy of the Regional Government of Magelang Regency towards Foreign Investment in Tourism". This study aims to find out how the Regional Government Policy of Magelang Regency in regulating foreign investment in the tourism sector as well as knowing its implementation and also the driving factors and obstacles in the implementation of foreign investment cooperation in tourism.This study is a normative juridical study that uses primary data, secondary data and tertiary data. Data collection is done using library research techniques, observation, interviews and online data search.Based on the results of this study indicate that the Regional Government Policy of Magelang Regency to increase foreign investment, especially in the tourism sector, is still very lacking because there are few foreign investors who invest in Magelang Regency. Based on the driving factors and constraints that exist, the prospect of foreign investment manifested by Magelang Regency Tourism towards the labor sector is very promising because it can open opportunities for employment opportunities for the people of Magelang Regency, and improve the economy in Magelang Regency. However, there are limitations to the Policy of the Regional Government of Magelang District in certain areas regulated by Presidential Regulation Number 58 Year 2014 concerning the Spatial Planning for Borobudur and Surrounding Areas and also the issuance of Regents Regulations governing Foreign InvestmentKeywords: Policy, Foreign Investment, Tourism

INVESTOR ASING DAN RETURN PASAR: APAKAH INVESTOR ASING MENDESTABILIZE BURSA EFEK INDONESIA

The purpose of this study is to analyze the impact of the presence of foreign investors on market returns on the Indonesia Stock Exchange. To see the impact of foreign investor trading activities, this study proposes three hypotheses that will be proven. The first hypothesis is that foreign investors will increase portfolio diversification or the so-called base-broadening hypothesis. The second hypothesis is that foreign investors will cause price pressures on stocks or the price pressure hypothesis. The third hypothesis is that foreign investors use certain strategies in their trading, namely the feedback trading strategy. Of the 401 companies selected 32 companies as samples. Furthermore, from the three hypotheses proposed, the only proven hypothesis is the price pressure. Thus, foreign investors can cause destabilize prices on the Indonesia Stock Exchange. The destabilize implication is that investors are possible to use negative feedback trading strategies to make a profit. Keywords: base-broadening, price pressure, feedback trading

The Impact of Union of European Football Associations (UEFA) Financial Fair Play Regulation on Audit Fees: Evidence from Spanish Football

This paper analyzes whether the Financial Fair Play (FFP) regulations set by Union of European Football Associations (UEFA) have influenced the auditing fees charged to football clubs. In addition, it explores the determinants of audit fees. We used a two-sample t-test with equal variances to determine whether differences are present. After this, we carried out a panel data regression with the clubs fix effect to estimate the determinants of audit fees in football clubs. Our findings revealed an increase of audit fees after the implementation of FFP regulations. On top of that, audit fees were explained by the presence of foreign investors if the audit firm was one of the Big 4 and if the auditor was a woman. The regulation change has had an impact on the audit fees charged by auditors for their services. However, this increase may be compensated over future years given the improving financial situation of clubs; therefore, the auditors’ risk diminishes and subsequent audit fees may be reduced. UEFA should monitor audit fees as well as the quality of the audit reports, which have become crucial to obtaining the license to participate in UEFA competitions.

Panda Games: Corporate Disclosure in the Eclipse of Search

We show that firms strategically alter their disclosure strategy when investors’ access to information via search engines is interrupted. We conduct a textual analysis and exploit an exogenous event—Google’s 2010 surprising withdrawal from mainland China, which significantly hampered domestic investors’ ability to search for foreign information but did not affect their cost to access domestic information. Following Google’s exit, Chinese firms’ announcements on foreign transactions become more bullish relative to domestic transactions. This effect is mitigated in the presence of foreign investors or analysts affiliated with foreign brokers, who are not subject to foreign information censorship by the Chinese government. Moreover, compared to those that operate domestically, firms with foreign operations issue rosier annual reports and manage earnings to a greater extent after Google’s departure; their stock prices also become less informative. These optimistic announcements or annual reports allow insiders to sell more shares at a higher price.

Foreign ownership and firm-level stock return volatility in Taiwan

With the increasing presence of foreign investors and their importance in the stock markets, the authors investigate the effects of foreign ownership on stock return volatility by using Taiwanese firm-level data covering a period from 1994 to 2014. The results demonstrate that foreign ownership is negatively correlated with stock return volatility during the whole sample period, the so-called stabilizing effect. For the sub-sample test, this effect is the largest during the period 2002–2007, the years following Taiwan joins WTO. However, the stabilizing effect did not exist after the global financial crisis in 2008 and recent years. The results are also robust after correcting the potential endogeneity issue.

Foreign investors’ influence on the real estate market capitalization rate – evidence from a small open economy

ABSTRACTThis article adds to the scarce literature on the influence of international investment flows on local real estate values. We hypothesize that a greater foreign-investor presence in a real estate market results in a lower capitalization rate and examine whether this holds true in the Helsinki CBD office market in Finland. This market provides an interesting case study by being part of a small open economy, in which the presence of foreign investors has substantially varied over time. The Dynamic OLS estimations using data for the period 1990–2015 provide support for the hypothesis. The baseline results show a highly statistically significant negative impact of foreign-investor participation on the capitalization rate, the point estimates indicating that a 10% point growth in the share of foreign buyers of the total transaction volume decreases the cap rate by approximately 30 basis points.

Value, governance and foreign shareholding in Brazilian companies

This study aims to identify the characteristics of Brazilian listed companies that have foreign investors. The purpose is to examine whether such companies have higher performance and valuation and better corporate governance. We study 215 listed companies from 2001 to 2012, and find that there is a significant relationship between the presence of foreign investors and higher firm valuation, higher profitability and better corporate governance.

The Election of the Big 4 Audit Firms In Mexico An Empirical Analysis (2000-2007)

In this article, we present the results of an empirical study on the factors that determine the election of the Big 4 in Mexico during the period from 2000 to 2007. To this purpose, we have estimated a logistic regression model using a sample of companies listed on the Mexico Stock Exchange and its financial statements audited by an independent auditor. The results indicate that corporate features such as; the presence of controlling shareholders, the debt level, the presence of foreign investors, business size and requirement for additional services by audited companies are some of the factors determining the election of the Big 4 in Mexico.

Institutional shareholder engagement with Japanese firms

Purpose– The purpose of this paper is to explore how shareholder engagement on environmental, social, and governance (ESG) issues is informally exercised by a large global institutional investor with locally embedded, geographically remote firms. This field is still a new area of research due to a scarcity of data, and because ordinarily, private engagement activities are conducted confidentially. Therefore, the paper aims to fill this gap in the literature by studying the private corporate engagement activities of a large UK-based institutional investor on ESG issues with Japanese investee firms in order to achieve a greater understanding of the under-researched area of corporate social responsibility.Design/methodology/approach– The authors employ a multi-method approach to analyse engagement activities by the institutional investor. The authors have obtained a unique data set of the institutional investor’s engagement activities. The institutional investor is UK-based, has a long history of active engagement, and is considered one of the oldest and largest specialists in responsible investment. Further, the authors have conducted several in-depth interviews with a UK-based ESG service provider as well as one of the largest Japanese trust companies.Findings– First, it is found that main target firms of engagement activities are large firms with global operations, and that corporate governance issues are the most important engagement topic in Japan. Second, in trying to effectively exercise voice across societies, engagement activities are conducted with geographically remote target firms on various ESG agendas in a self-enforcing, face-to-face, and sometimes collective manner. Finally, this study argues for the gap between the asset manager’s motivation to engage and local target firms’ readiness to respond due to corporate organisational and language issues.Originality/value– The authors contribute to social responsibility literature by focusing on the role of global investors in Japan to diffuse global standards. This area has been largely neglected in this stream of literature, despite the increasing presence of foreign investors in Japan. This is one of the first attempts to analyse a global investor’s engagement strategies with one specific country outside of the USA and Europe. Further, within the literature on shareholder engagement, this is the first paper that focuses on the means of engagement activities and the responses by target firms.

Factors inhibiting Japanese firms from zero leverage: financial constraints and bank relationships

The objective of our paper is to clarify the factors that inhibit Japanese firms from being unlevered, focusing on the interactions between financial constraints and bank relationships. Through analysis of variance, logistic regressions, and sensitivity analyses, we conclude that financial constraints and bank shareholdings, which inhibit firms from being unlevered, are more powerful than the presence of foreign investors that encourage unleverage. Based on our panel data on 822 Japanese public firms, we find that among developed countries, Japan has the fewest unlevered firms, with less than 5%. Additionally, we observe reciprocal cross stock holdings between unlevered firms and their banks.