Abstract:This paper examines the impact of blockholder dispersion on the foreign ownership in the Korean stock market over the period 2005-2016. We use the Herfindahl Index as a substitute variable for blockholder dispersion. Results show that a lower Herfindahl Index leads to a higher foreign ownership of the publicly listed companies in Korea. This implies that foreign investors prefer companies with dispersed ownership. We confirmed that foreign investors also preferred firms with low volatility, small dividend yiel… Show more
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