Foreign Ownership, Stock Performance-Risk, and Macroeconomic Factors in Asean Countries

Abstract

This research examines the impact of foreign ownership on stock performance-risk and macroeconomic factors in countries of the Association of Southeast Asian Nations (ASEAN). To examine our research question, we utilize annual panel data consisting of listed companies (2007 to 2018). We find that foreign ownership enhances stock performance and gross domestic product, but it decreases risk, exchange, and interest rate. Conversely, performance and GDP attract foreign investors, but risk, exchange, and interest rates reduce it. Those results differ in diverse settings and countries.

Determinants of Foreign Direct Investment from China to Indonesia

“…Developing countries generally need more domestic savings due to capital difficulties. The size of domestic saving will affect capital formation so that for countries with relatively low income, domestic saving is also relatively low (Naufa et al, 2021) (Musvira et al, 2022).…”