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Foreign investors and corporate risk taking behavior in an emerging market

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  • Vo, Xuan Vinh

Abstract

This paper investigates the impact of foreign ownership on the corporate risk taking activity at the firm level in Vietnam. Employing different techniques of panel data estimation, we find that foreign investors help to reduce the corporate risk taking activities. The result supports the notion that foreign investors in Vietnam stock market focus on long run perspectives rather than short term gain. This finding has implications in recognizing the importance of foreign investors in emerging markets.

Suggested Citation

  • Vo, Xuan Vinh, 2016. "Foreign investors and corporate risk taking behavior in an emerging market," Finance Research Letters, Elsevier, vol. 18(C), pages 273-277.
    • Handle: RePEc:eee:finlet:v:18:y:2016:i:c:p:273-277
    DOI: 10.1016/j.frl.2016.04.027
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G35 - Financial Economics - - Corporate Finance and Governance - - - Payout Policy

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