• Asia-Pacific Journal of Business
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• v.11 no.4
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• pp.205-224
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• 2020

Purpose - This study aimed to identify the effects of ownership structures on agency costs in internationally diversified firms listed on the KOSDAQ market. Design/methodology/approach - A total of 5,824 samples were finally selected and empirically analyzed for a total of nine years from 2011 to 2019, during which the International Accounting Standards had been mandatory for firms listed on the KOSDAQ market. Findings - The results of this study showed that the effects of ownership structures on the ratio of asset turnover are positive for the major share and foreign equity ratios of international diversified firms. Moreover, by selecting the ratio of entertainment expenses as a proxy for agency expenses, this study confirmed that the effects of the ownership structure of an international diversified entity on entertainment expenditure were determined to show a significantly negative relation to entertainment expenditure, thus indicating that the higher the ratio of major shareholders, the more appropriately control the expenditure of entertainment expenses through arbitrary private deviations of the management.Furthermore, considering the effect of the ownership structure on the expenditure of sales and administrative expenses as a proxy variable for agency costs, this study verified that the majority share ratio of international diversified firms was negative to the expenditure of sales and administrative expenses, confirming that the higher the share of major shareholders, the lower the selling and administrative costs, but insignificant.Finally, as a result of determining whether the ownership structure of an international diversified firm affects the holding of free cash, the majority share of this firm shows a significantly negative relation to the ratio of the holding of surplus cash, indicating that the higher the proportion of major shareholders, the more appropriately control the holding of the entity's free cash through arbitrary private deviance by the manager. Research implications or Originality - Major shareholders of an internationally diversified firm listed on the KOSDAQ market play a positive role in the firm's performance by properly controlling agency costs that may be incurred by the management.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.9
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• pp.9-24
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• 2022

With a view to attracting foreign investment and growing the economy, the Vietnamese government has hastened financial reforms, including the lifting of limitations on foreign investment, which has resulted in rapidly rising foreign ownership in recent years. To study the relationship between transactions of foreign investors and transactions of domestic investors on two stock exchanges in Vietnam Ho Chi Minh City Stock Exchange (HSX) and Hanoi Stock Exchange (HNX). This study applies a secondary dataset comprising daily market trading information of 912 stocks from 18 industries listed on 2 Vietnam stock exchanges, including HSX and HNX, which includes executed price, executed volume, daily Buy Orders, and Sell Orders categorized into domestic investors' orders and foreign investors orders from 01.04.2010 to 10.04.2018. The regression results show a significantly positive relationship between foreign investors' trading and domestic investors' transaction in all trading activities in both up and down markets. Therefore, these results indicate that domestic investors in Vietnam are concerned with foreign investors' trading as an important sign, and domestic investors tend to follow their counterparties without appropriate fundamental information. From there, there are signs of herding behavior of domestic investors following foreign investors in transactions on the stock market in Vietnam.

• Management & Information Systems Review
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• v.33 no.5
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• pp.171-184
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• 2014

This paper investigate the impact of external financing constraints(EFC) on the dividend policy(cash dividend ratio) and the impact of interaction of ownership structure((1)the percentage of shares held by external blockholder who owns at least 5% of equity(5% BHR), (2) the percentage of shares held by foreign investors(Foreign), (3) the percentage of shares by insider shareholders(Insider)) and external financing constraints on the dividend policy. The purpose mentioned above are empirically tested using 370 firm-year data listed on the Korean Exchange(KRX) with multiple regression method. Summarizing the results of analysis as following; Firstly, we find that EFC has negative relationship with cash dividend ratio. Secondly, interaction of 5% BHR and EFC has positive relationship with cash dividend ratio. Also, interaction of Foreign and EFC has positive relationship with cash dividend ratio. But, Insider and EFC has negative relationship with cash dividend ratio. This study contributes to research related to dividend policy by recognizing that ownership structure influences the dividend policy.

• International Area Studies Review
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• v.22 no.4
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• pp.99-121
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• 2018

This study investigated the factors influencing the knowledge acquisition of Thai local partners from advanced foreign partners through international joint ventures(IJVs). For this purpose, this study initially identified three dimensions of characteristics in the context of IJVs that would influence local partners' knowledge acquisition - a local partners' own characteristic (absorptive capacity), a relationship characteristic with IJVs (proximity to the equal equity ownership), and a relationship characteristic with foreign partners (trust), and examined their effects on local partners' knowledge acquisition. The study further investigated the moderating effects of the tacitness of knowledge on the relationships between those characteristics and knowledge acquisition. Based on the data collected from Thai IJV local partners, results revealed that a local partners' own characteristic, absorptive capacity, and a relationship characteristic with IJVs, proximity to the equal equity ownership, had a strong positive effect on local partners' knowledge acquisition. Results further showed that the tacitness of knowledge strengthened the relationships between absorptive capacity and knowledge acquisition and between trust and knowledge acquisition, but not the relationship between proximity to the equal equity ownership and knowledge acquisition.

• Management & Information Systems Review
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• v.38 no.3
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• pp.35-53
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• 2019

A standing auditor can perform the monitoring and control activities for the opportunistic behaviors of top manager. However, for this purpose she/he must have the independence from top manager. Thus, this study is designed to analyze the factors that influences the independence of standing auditor. The independence of standing auditor as dependent variable was measured in terms of school and company ties to top manager. The relationship between the shareholding of professional top manager and independence of standing auditor, and the moderating effects of the shareholdings of related-party, institutional investors, and foreign investors were examined by implementing multiple regression and conditional moderating effect analyses. The findings present a negative relationship between the shareholding of professional top managers and the independence of standing auditor. They also reveal a positive moderating effect of the shareholding of related-party on that relationship. On the other hand, the shareholdings of foreign and institutional investors did not significant change the relationship between the shareholding of professional top manager and the independence of standing auditor. The findings imply that professional manager might be able to lower the controlling mechanism by appointing a standing auditor having low independence. Related-party as an internal control mechanism might be beneficial to reduce this effect while institutional investors or foreign investors as an external control mechanisms might not. This is the first study that examine the antecedents of the independence of standing auditor in terms of the characteristics of ownership structure. It provides a guideline for selecting an effective standing auditor with the consideration for ownership structure.

• Asian Journal of Innovation and Policy
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• v.7 no.1
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• pp.150-177
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• 2018

We review two specific risk management strategies of venture capitalists (VCs): deal syndication and domain specialization with respect to their explicit role in adjudging and managing the overall magnitude of information asymmetry risks. These are analyzed for three distinct categories of VC firms as classified by their funding stage focus (early vs. late), ownership type (foreign vs. domestic) and the human capital composition of the core VC team (entrepreneurial vs. investor). The analysis is based on both secondary data and primary data for active 72 VC firms in India. Syndication is moderately important for entrepreneurial VC firms, but not at all important for early-stage focused and foreign VC firms. This finding is distinctly different from what has been conventionally observed in the literature. Among the various arenas of domain specialization, high-technology focus is important for all segments of VC firms. In the context of investment-stage focus, foreign VC firms exhibit growth-stage specialization, while entrepreneurial VC firms concentrate on earlier investment stages.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.4
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• pp.73-81
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• 2022

The focus of the research is to determine the amount of financial information disclosure and the factors that influence it for non-financial enterprises listed on Vietnam's stock exchange. To evaluate the level of financial information disclosure, the study uses a set of disclosure indexes from the world's leading credit rating agency, Standard and Poor's (S&P). It makes some revisions in compliance with regulations for information disclosure on the Vietnam stock market. The study collects data in the form of annual reports for the year 2017-2020 from 350 non-financial firms listed on Vietnam's stock exchange and then uses a multivariate regression model to assess the effects of factors on the amount of financial information disclosure. The findings show that the size of the firm, the size of the board of directors, and foreign ownership all have a positive impact on financial transparency; however, the number of years the company has a negative impact. According to the findings of this study, companies with more total assets, a larger board of directors, and a higher rate of foreign ownership publish more financial information. Still, long-term listed companies on the stock exchange tend to disclose less.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.1217-1230
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• 2021

Using a multinomial logit model with the panel-data set of Vietnam manufacturing firms, this paper investigates the impacts of foreign direct investment (FDI) - small and medium enterprises (SMEs) linkages and other factors on SMEs' participation in the global value chain (GVC). We consider GVC firms are those engaging in any of the three modes including (i) using domestic inputs to export (D2E), (ii) using imported inputs to produce for the domestic market (I2P), (iii) using imported inputs to export (I2E). We discover that FDI-SME linkages statistically encourage Vietnamese SMEs to integrate into the GVC via I2P and I2E, while no statistical association between FDI-SME linkage and D2E participation is found. GVCs participation likelihood is also positively correlated with the introduction of new product introduction. The establishment of firms' production facilities in industrial zones and foreign ownership are both reported to be significantly decisive factors to SMEs' decisions on GVC participation. Besides, there is a strong association between firms' attributes, i.e. employment, capital intensity as well as financial access, and their participation in the GVC. Local governance quality (proxied by the Provincial Competitiveness Index) and the share of skilled labor at the province-level can facilitate firms' integration into GVCs, while greater market concentration may be a hurdle to such potential.

• East Asian Economic Review
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• v.26 no.3
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• pp.205-225
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• 2022

Different types of corporate ownership may affect the environment among firms and could influence the decisions of new entities in the region. This study determines the role of state-owned enterprises (SOEs) in hindering new foreign manufacturing firms in the Yangtze River delta (YRD). The negative binomial regression is used for city-sector level data and the following points summarize the results: Firstly, the unique privileges that SOEs enjoy alongside governmental support create difficulties for foreign firms trying to establish themselves near existing SOEs. Secondly, although core cities are more attractive to foreign firms than peripheral cities, the role of core-periphery reveals that, in spite of all the regional advantages core cities could offer, whenever the share of SOEs is higher, the core-periphery system will have an adverse impact on new foreign firms. In other words, government preference for SOEs can suppress the attraction of foreign start-ups. However, after 2008, the governmental authorities finally succeeded in implementing their promising policy of fair treatment and competition in only the core cities.

• Health Policy and Management
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• v.13 no.3
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• pp.52-70
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• 2003

The rate of conversion to Medical-juridical-persons' ownership of medical institutions has increased rapidly since its start in 1970s in Korea. The most sensitive issue to introduce for-profit medical institutions, ignited particularly by the WTO/DDA negotiations, has sparked considerable debate, stemming largely from conflicting views on the theoretical effects of ownership status on organizational behavior. This study surveyed health-related experts' opinions on allowing for for-profit-firms-owned medical institutions. Some fear that the obligation to maximize the share-holders' return on their investment will cause the medical institutions to eliminate necessary but less lucrative services. They may easily fall under more pressure to generate income, and respond more aggressively than not-for-profit medical institutions to financial pressures. Advocates of for-profit ownership of medical institutions argue that greater responsiveness to the demands of the marketplace will lead to larger investment, higher quality and lower costs to consumers. Referring to both foreign countries' experience and domestic experts' opinions, this study suggests for reform of the current Korean Medical-Juridical-Person(MJP) System. Introduction of so-called “Capital-investment” MJPs is recommended where the properties left in case of their dissolution can be distributed to original investors according to the procedures stipulated in their statutes. However, their annual profits are not allowed to be allocated to investors, but should be reinvested for their medical institutions, as is the case in current MJPs. Their legal aspects are also reviewed in this study.