Home-country Ownership Structure of Foreign Institutional Investors and Control-Ownership Disparity in Emerging Markets

Title
Home-country Ownership Structure of Foreign Institutional Investors and Control-Ownership Disparity in Emerging Markets
Authors
Kim, WoochanSung, Taeyoon
Keywords
corporate governance; foreign portfolio investment; Asian financial crisis
Issue Date
2007-08
Series/Report no.
KDI Working Paper Series;07-08
Abstract
Disparity between control and ownership rights is common in emerging markets. This paper studies three related questions regarding its effect on the positions of international institutional investors. First, are international investors averse to holding those stocks with a large disparity? Second, does the attitude toward the disparity depend on the quality of corporate governance of the investors’ home country? Third, was the Asian financial crisis a wake-up call that induced international investors to attach more weight to corporate governance problems in emerging markets? By employing two unique datasets on foreign investment and corporate governance in Korea, the paper finds that the answers are affirmative to all three questions but with interesting nuances.
URI
http://archives.kdischool.ac.kr/handle/11125/17123
Files in This Item:
Appears in Collections:
KDI School Working Paper Series


Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.