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Author: Kwangsoo Ko Publisher: ISBN: Category : Languages : en Pages :
Book Description
The rise of institutional investors in stock ownership is a common phenomenon observed around the world, and the importance and influence of foreign investors is also increasing, especially in Asian markets. This study examines the characteristics of institutional and foreign investor stock ownership, and the stock price performance according to their ownership for two major Asian markets, Japan and Korea. Overall, foreign investors show more apparent preference for stocks with large capitalization and low book-to-market ratio than do institutional investors. In Korea, foreign investors also show preference for stocks with a high return-on-equity. The analysis of abnormal returns using the Fama-French three-factor model shows that stocks with simultaneously high institutional and foreign ownership significantly outperform those with low ownership of that type. The differences in abnormal returns are more evident for foreign ownership portfolios than for institutional ownership portfolios, especially in Korea. If we consider either institutional or foreign investors, the differences in abnormal returns remain still significant in Korea, but not in Japan. Both institutional investors' incentive for stock holding and the extent of stock market efficiency would be the possible explanations for the different results between Japan and Korea.
Author: Kwangsoo Ko Publisher: ISBN: Category : Languages : en Pages :
Book Description
The rise of institutional investors in stock ownership is a common phenomenon observed around the world, and the importance and influence of foreign investors is also increasing, especially in Asian markets. This study examines the characteristics of institutional and foreign investor stock ownership, and the stock price performance according to their ownership for two major Asian markets, Japan and Korea. Overall, foreign investors show more apparent preference for stocks with large capitalization and low book-to-market ratio than do institutional investors. In Korea, foreign investors also show preference for stocks with a high return-on-equity. The analysis of abnormal returns using the Fama-French three-factor model shows that stocks with simultaneously high institutional and foreign ownership significantly outperform those with low ownership of that type. The differences in abnormal returns are more evident for foreign ownership portfolios than for institutional ownership portfolios, especially in Korea. If we consider either institutional or foreign investors, the differences in abnormal returns remain still significant in Korea, but not in Japan. Both institutional investors' incentive for stock holding and the extent of stock market efficiency would be the possible explanations for the different results between Japan and Korea.
Author: Kee-Hong Bae Publisher: ISBN: Category : Languages : en Pages : 38
Book Description
We investigate the gains and losses from equity trades of individual investors, various institutional investors, and foreign investors in the Tokyo Stock Exchange. We develop a trade-weighted performance measure and examine the impact of trading intervals, price spreads, and market timing on performance. We find that different investor types gain or lose from different sources. For example, we discover that individual investors have poor market timing ability but potentially gain during short-run trading intervals as their average sell price is consistently higher than the average purchase price. In contrast, we find that foreign investors consistently generate gains from trade due to good market timing, although their average sell price is lower than the average purchase price. Also, we find that foreign investors extract significant portion of their gains by trading against Japanese institutional investors when Japanese investors trade before their fiscal-year end.
Author: Masahiko Aoki Publisher: OUP Oxford ISBN: 0191536385 Category : Business & Economics Languages : en Pages : 480
Book Description
Debates regarding corporate governance have become increasingly important in Japan as the post-war model of bank-based, stakeholder-oriented corporate governance faces the new pressures associated with globalization and growing investor demands for shareholder value. Bringing together a group of leading scholars from economics, law, sociology and management studies, this book looks at how the Japanese approach to corporate governance and the firm have changed in the post-bubble era. The contributions offer a unique empirical exploration of why and how Japanese firms are reshaping their corporate governance arrangements, leading to greater diversity among firms and new 'hybrid' forms of corporate governance. The book concludes by looking at what effect these incremental but transformative changes may have on Japan's distinctive variety of capitalism.
Author: Yung Chul Park Publisher: Columbia University Press ISBN: 0231165269 Category : Business & Economics Languages : en Pages : 380
Book Description
This volume connects the evolving modern financial systems of China, Japan, and Korea to the development and growth of their economies through the first decade of the twenty-first century. It also identifies the commonalities among all three systems while taking into account their social, political, and institutional differences. Essays consider the reform of the Chinese economy since 1978, the underwhelming performance of the Japanese economy since about 1990, and the growth of the Korean economy over the past three decades. These economies engaged in rapid catch-up growth processes and share similar economic structures. While domestic forces have driven each country’s financial trajectory, international short-term financial flows have presented opportunities and challenges for all. For these countries, the nature and role of the financial system in generating real economic growth is integral, though nuanced and complex. The result is a fascinating spectrum of experiences with powerful takeaways.
Author: Jeong-Bon Kim Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
Using a large sample of firms listed on the Korea Stock Exchange over the 1992-2002 period, this paper investigates a hitherto unexplored question of whether and how trading by foreign and domestic institutional investors improves the extent to which firm-specific information is incorporated into stock prices which we call stock price informativeness. Our results reveal the following. First, stock price informativeness increases significantly with the intensity of trading by foreign investors and domestic institutional investors. Second, trading by foreign investors facilitates the incorporation of firm-specific information into stock prices to a greater extent than trading by domestic institutions. Third, among domestic institutions with different investment horizons, short-term institutions such as securities companies play a more important role in accelerating firm-specific information capitalization into stock prices, compared with long-term institutions such as banks and insurance companies. Finally, our results indicate that the complete abolishment of foreign ownership restrictions in 1998 has significantly improved the information role of foreign investors in the Korean stock market.
Author: Keunsoo Kim Publisher: World Scientific ISBN: 9813236779 Category : Business & Economics Languages : en Pages : 293
Book Description
The Korean stock market, ranked 11th in the world in terms of market capitalization of stocks in 2017, is a globalized market. Foreign investors hold close to one-third of stocks listed on the Korea Exchange (KRX) as of May 2017 (in terms of market capitalization). The US and the UK alone account for almost 50% of foreign ownership in the KRX.Research or information on the Korean stock market, however, is not well known to the domestic or the global investment communities. There are minimal investment studies that deal with practical issues from the perspective of investment analysts. This volume bridges the academic and investment communities by providing analyses of the Korean stock market that contain practical values.This book comprehensively analyzes anomalies in the Korean stock market, including time series anomalies such as the January effect, cross-sectional anomalies such as the size effect and book-to-market effect, and anomalies related to corporate events. The authors also investigate sales revenue, profitability, valuation (M/B ratio), and the financial risk of listed companies in the Korean stock market at both the sectoral level and industrial level.As the study uses a comprehensive data set and long-term sample period, readers can benefit from consistent and comparable empirical results.
Author: Wen He Publisher: ISBN: Category : Languages : en Pages : 34
Book Description
This study investigates the impact of foreign investors on the informational efficiency of stock prices in local markets. Using a large sample of Japanese firms over the period 1975 to 2008, we find that prices deviate less from a random walk for stocks with a large change in foreign ownership. This relation is robust to controls for local institutional ownership, stock liquidity, and firm fixed effects. Granger causality tests show that changes in foreign investor trading predict changes in price efficiency in the next period, but not vice versa. Finally, we use a quasi-natural experiment to show that an increase in foreign ownership causes an improvement in price efficiency. Collectively, these results suggest that foreign investors improve price efficiency in local stock markets.
Author: John Buchanan Publisher: Cambridge University Press ISBN: 1107379318 Category : Business & Economics Languages : en Pages : 389
Book Description
Hedge fund activism is an expression of shareholder primacy, an idea that has come to dominate discussion of corporate governance theory and practice worldwide over the past two decades. This book provides a thorough examination of public and often confrontational hedge fund activism in Japan in the period between 2001 and the full onset of the global financial crisis in 2008. In Japan this shareholder-centric conception of the company espoused by activist hedge funds clashed with the alternative Japanese conception of the company as an enduring organisation or a 'community'. By analysing this clash, the book derives a fresh view of the practices underpinning corporate governance in Japan and offers suggestions regarding the validity of the shareholder primacy ideas currently at the heart of US and UK beliefs about the purpose of the firm.
Author: Kwangsoo Ko
Author: Kwangsoo Ko
Author: Kee-Hong Bae
Author: Masahiko Aoki
Author: Yung Chul Park
Author: Jeong-Bon Kim
Author: W. T. Ziemba
Author: Keunsoo Kim
Author: Wen He
Author: Shōjirō Tokunaga
Author: John Buchanan