This study investigates how corporate governance characteristics affect earnings management of firms in Vietnam. In particular, we examine whether firm’s use of discretionary accruals is influenced by board size, state ownership and foreign ownership. Our empirical analysis is based on a relatively large sample of 570 non-financial Vietnamese listed firms from 2010 to 2014. We find that larger ...

This study investigates the wealth effect of foreign investor presence on the domestic market before and after the announcement of lifting foreign stock ownership restrictions on September 4, 1997 in Indonesia. We find that the presence of foreign investors is associated with positive wealth effects as indicated by positive cumulative abnormal returns. The impact of this event, however, is mode...

With a newly constructed dataset on foreign firms in Japan for the period 1995-2008 from firm-level surveys, this paper estimates the impact of foreign firms on industrial productivity at the regional level. A Bayesian-model averaging approach is taken to account for model uncertainty resulting from various linkages between foreign firms and domestic industries. The results show that the foreig...

Global economy in the future is going to be a market place in which more than 180 countries of the World will be vying with each other for capturing, maintaining and enhancing their share in the trade and investment. Like national markets where individual firms compete with each other, individual countries will have to compete with each other in the global market. Thus, each country has to demo...

We compare the effects of transactional, institutional, and experience influences on the ownership strategies of Japanese investors. Our theoretical development suggests that the equity position of a foreign investor should increase as the specificity of the assets transferred to the foreign affiliate increases, but a lower equity position should be assumed when the foreign investor requires co...

We examine the impacts of agglomeration economies on the location of Foreign Direct Investment (FDI) in Vietnam. Using a large dataset that provides detailed information about individual firms, we investigate the location choices by 920 newly created foreign firms in 2009 in about 125 different 4-digit industries. The estimates of the conditional logit model show that agglomeration benefits mot...

Between 2003 and 2007, the value of shares of Indian companies held by foreigners went up by roughly 13 times. This paper seeks to explain this event. A simple decomposition of changes in the value of foreign shareholding suggests a negative contribution owing to changes in insider shareholding (which actually went up), with the bulk of the change being contributed by the rise in Indian market ...

The existing empirical literature on foreign direct investment (FDI) entry strategies tends to allow a binary choice between wholly owned enterprises (WOEs) and equity joint ventures (EJVs) or between greenfield investment and acquisition only. The current study establishes a multinomial logit model for the choice from all four FDI entry modes in China. Hypotheses involving country-, industryan...

What actions can governments in developing countries take to make their economies more appealing to foreign investors? One increasingly prominent answer focuses on the effect of signing onto international economic agreements, showing that countries’ participation in investment and trade treaties is associated with greater inflow of FDI. Yet the nature of this empirical relationship remains uncl...

Investment is essential for growth and for job creation. It integrates the EU in global value chains to achieve a stronger economic recovery. EU policies are geared towards increasing investment as part of the recovery. The EU already is the world's largest source and destination of foreign direct investment (FDI), and therefore has a strong interest to facilitate and protect international inve...