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Foreign ownership and corporate risk-taking: Panel threshold evidence from a transactional economy

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  • Đặng, Rey
  • Le, Nhu Tuyen
  • Reddy, Krishna
  • Vu, Manh Chien

Abstract

This article scrutinizes the influence of foreign ownership on corporate risk-taking for 461 listed companies in Vietnam between 2012 and 2016. A regression method is employed for assessing whether a threshold influences foreign ownership interests. The findings show that foreign investment promotes corporate risk-taking up to a certain point; once past this threshold, there is little significant influence on foreign investment. The findings imply that a minimum level of foreign ownership is needed in order to have a significant effect on corporate risk-taking in Vietnam.

Suggested Citation

  • Đặng, Rey & Le, Nhu Tuyen & Reddy, Krishna & Vu, Manh Chien, 2022. "Foreign ownership and corporate risk-taking: Panel threshold evidence from a transactional economy," Finance Research Letters, Elsevier, vol. 45(C).
    • Handle: RePEc:eee:finlet:v:45:y:2022:i:c:s1544612321002622
    DOI: 10.1016/j.frl.2021.102190
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