When Do Foreign Institutional Blockholders Passively Promote Firm Innovation in a Local Market? Evidence from Korea

Joe, Denis Yongmin; Chung, Chune Young; Morscheck, Justin

doi:10.1111/ajfs.12290

Cited by 8 publications

(4 citation statements)

References 108 publications

(148 reference statements)

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“…Pressure resistant investors follow the active monitoring hypothesis and have more economic incentive to monitor, making it possible for them to keep an eye on firm management (Pound, 1988). Pension funds and mutal funds are considered to be pressure-resistant and in a superior position to oversee firm management since they only have an investment relationship with investee firms (Hutchinson et al, 2015).Moreover, foreign institutional shareholders display the traits of pressure sensitive investors (Nashier & Gupta, 2016;Joe et al, 2020;Panda & Leepsa, 2019). They monitor investee firms more aggressively and demand management decision-making processes be changed in order to increase firm performance (Ferreira & Matos, 2008;Gillan & Starks, 2003).…”

Section: Information Asymmetry Theorymentioning

confidence: 99%

Institutional Ownership And Dividend Payout Policy In Kenya

Buigut

2023

JBMR

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This purpose of this study is to investigate the effect of institutional ownership on dividend payout policy among listed firms in Kenya. The study used a sample of 40 Kenyan listed firms over the period of 2009-2019 collected from published audited financial statements. To test the hypothesized relationships, this study used the fixed effect and random effect panel data. The study used a sample of 40 Kenyan listed firms over the period of 2009-2019 collected from published audited financial statements. To test the hypothesized relationships, this study used the fixed effect and random effect panel data. The empirical findings indicate that foreign and domestic institutional ownerships are significant and positively associated with dividend payout policy

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Section: Information Asymmetry Theorymentioning

confidence: 99%

Institutional Ownership And Dividend Payout Policy In Kenya

Buigut

2023

JBMR

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“…Institutional investors exit when they are dissatisfied with managerial decisions (Mccahery et al., 2016; Joe et al., 2020). Foreign investors may sell shares to express their dissatisfaction with managers’ M&A decisions regarding the ex‐post “exit” channel.…”

Section: Hypothesis Developmentmentioning

confidence: 99%

Do Foreign Investors Monitor Managers in Merger and Acquisition? Evidence from China*

Xiao-fang

Yang

Cai

et al. 2022

Asia-Pac J of Fin Stud

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Using foreign investors' shareholding to proxy for foreign investors' monitoring effect in the Chinese stock market, we find that those acquirers exhibit higher announcement returns with higher shareholding, and this effect is stronger when acquirers are private firms. We provide price efficiency and corporate governance channels through which foreign investors play a monitoring role in mergers and acquisitions. Finally, foreign investors decrease the likelihood that managers will conduct mergers in the future and significantly improve long-run performance. Our study provides new insights into the real effects of foreign investors on acquisition performance and the economy.

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“…According to the signaling theory, government subsidies, an important source of innovation funds, are very important tools for signal transmission (Peng & Liu, 2018) and can ensure the ongoing innovation activities. A large literature examines the role of political ties (Wang et al, 2022), manager characteristics (Tian et al, 2020; Ting et al, 2021), corporate governance (Joe et al, 2020; Sapra et al, 2014), and external environments (Bai et al, 2022; Zhang, Wu, et al, 2022) in explaining firms' innovation behavior. The research above enriched the literature about the factors impacting firm innovation.…”

Section: Introductionmentioning

confidence: 99%

The impact of government support on firm innovation: Evidence from China

Gao

2023

Manage Decis Econ

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This paper systematically analyzes the relationship between government support and private enterprise innovation. A firm‐level proxy for government support is derived based on Chinese context. Specifically, we explore whether and how government subsidies affect private firms' innovation output. We find that government subsidies can promote private enterprise innovation, and this impact will be further strengthened when firms face high level of financing constraints and when large shareholders pledge their equities. However, this impact will be weakened in regions with high marketization degree and good information environment. Further analysis shows that government support can have a positive impact on corporate innovation by increasing private firms' innovation input and reducing financing costs. Our study sheds new light on the role of government support by investigating the boundary conditions and exploring the impact channel of its effect. Also, this paper fills a gap in the research on the role of government support and the situational research by putting this issue in Chinese context.

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When Do Foreign Institutional Blockholders Passively Promote Firm Innovation in a Local Market? Evidence from Korea

Cited by 8 publications

References 108 publications

Institutional Ownership And Dividend Payout Policy In Kenya

Institutional Ownership And Dividend Payout Policy In Kenya

Do Foreign Investors Monitor Managers in Merger and Acquisition? Evidence from China*

The impact of government support on firm innovation: Evidence from China

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