Qualified foreign institutional investor ownership deregulation and the restatement of financial reports --- empirical findings from Taiwan

Chen, Ching‐Lung; Weng, Pei-Yu; Chien, Chu‐Yang

doi:10.1016/j.iref.2017.12.005

Cited by 21 publications

(11 citation statements)

References 74 publications

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“…Prior research examining the influence of foreign institutional owners on firms' performance has shown two conflicting perspectives on the role of these investors (Ferreira et al, 2017;Lin & Zhang, 2009;Sakawa & Watanabel, 2020;Shaban & James, 2018). Furthermore, this paper draws on institutional theory to take into account the specificities of emerging economies in terms of market regulation and investor protection legislation (Aggarwal et al, 2011;Bena et al, 2017;Chen et al, 2018).…”

Section: Literature Reviewmentioning

confidence: 99%

“…This monitoring role can derive from the disciplinary effect exerted by institutional owners on corporate insiders. Many studies have supported the "monitoring role" of institutional owners to enhance firm value (Lin & Fu, 2017;Othmani & Sahut, 2010), to promote long-term corporate investments (Bena et al, 2017;Gharbi & Othmani, 2020), to reduce managers' entrenchment (Pathan et al, 2021) and to encourage good corporate governance practices (Chen et al, 2018). The active behaviours of institutional investors should be more assertive for the case of foreign institutional investors.…”

Section: Advantages Of Foreign Institutional Investors Ownershipmentioning

confidence: 99%

“…In contrast, foreign institutional owners have more independent positions and fewer conflicts of interests. They can proceed to reduce managerial entrenchment and promote corporate growth (Chen et al, 2018;Gharbi & Othmani, 2020, Lin & Fu, 2017.…”

Section: Advantages Of Foreign Institutional Investors Ownershipmentioning

confidence: 99%

“…Many reasons motivate our research. First, the increasing presence and role of institutional investors worldwide during recent years require more academic attention with a special focus on their active involvement in firms' management (Chen et al, 2018;Pathan et al, 2021). While most studies have been interested in the role of local institutional investors, little has been done concerning foreign institutional investment.…”

Section: Introductionmentioning

confidence: 99%

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Foreign institutional ownership and bank performance: Evidence from Tunisia

Othmani

2022

African Development Review

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This paper aims to investigate the effect of foreign institutional investors on banks' performance for the case of a developing African country. Previous studies on the impact of foreign institutional investors on banks' corporate governance and performance are inconclusive. The sample includes a unique dataset of Tunisian banks during the period 2005-2020. First, this study uses panel data regressions with fixed or random individual effects. Then it adopts the GMM system technique to account for potential endogeneity problems and the dynamic nature of the panel data. The results support a positive relationship between foreign institutional ownership and banks' performance as measured by Tobin's Q and Return On Equity. They indicate that banks with more foreign institutional ownership perform better. Foreign institutional investors are considered as good monitors. They facilitate the transfer of technology and the development of new products and services. These findings contribute to the literature by providing empirical evidence on the role of foreign institutional investors in the banking sector for an African emerging economy, where the studies on this matter are scarce. Policymakers and bank managers in emerging economies should attract foreign institutional investors to benefit from their experience and enhance bank performance.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Advantages Of Foreign Institutional Investors Ownershipmentioning

confidence: 99%

Section: Advantages Of Foreign Institutional Investors Ownershipmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Foreign institutional ownership and bank performance: Evidence from Tunisia

Othmani

2022

African Development Review

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“…In order to familiarize ourselves with relevant studies, we conduct a survey of relevant literature in terms of intraday trading and day trading, institutional investors and individual investors, as well as diverse investors and day trading. Additionally, since investors' behaviors, such as trading and shareholding behaviors, are likely affected by the corporate governance and financial issues [29,[33][34][35][36][37][38][39], we survey the literature in terms of investors' behaviors, corporate governance, and financial performance.…”

Section: Literature Review and Hypotheses Proposedmentioning

confidence: 99%

Are the shareholding and trading behaviors of diverse investors affected by the relaxation of day trading?

Cheng

et al. 2021

PLoS ONE

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The day trading in Taiwanese stock market expands considerably at the beginning of 2016, which increases the transactions of stocks consequently and sparks our interest in exploring the issue of day trading. In this study, we use the data of Taiwan Stock Exchange listed firms to investigate whether the day trading volume over total trading volume (hereinafter referred to as the day trading ratio) and the turnover ratio enhanced by the increase of day trading volume would affect the shareholding and trading behaviors of diverse institutional and individual investors. Unquestionably, we bring out several impressive findings. First, foreign institutional investors would not prefer holding or trading the stocks with high day trading ratios, whereas individual investors would prefer holding these kinds of stocks. We infer that this finding might result from the fundamental and the speculative concerns of these various investors. Second, domestic institutional investors and security dealers would prefer trading the stocks with high turnover ratios, but foreign institutional investors still lack of interest in trading these stocks, implying that the investment strategies would be dissimilar among various institutional investors. Since foreign institutional investors are regarded as the successful institutional investors in Taiwan, we argue that our revealed results may help market participants trace the behaviors of diverse investors, especially the foreign institutional investors, after day trading relaxation in Taiwan.

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