The impact of foreign ownership stock price volatility - Evidence from Ho Chi Minh stock exchange (Hose) from 2011 to 2015
Abstract
The paper is depend on data collected from Ho Chi Minh Stock Exchange (HOSE) during the period 2011-2015 and examining the impact of foreign ownership to stock return votatility.Descriptive analysis and regression analysis are used to conduct data. As the result, by looking at the descriptive data and different listed companies, the research show the level of foreign ownership through different majors and factors. Moreover, testing research model and running analysis regression, the research result show that foreign ownership include institutional foreign investors and individual investors decrease the firm level stock votatility after controlling other factors like firms size, turnover, market to book ratio, leverage, ownership constructure.. Furthermore, the research also point out the domestic relationship shareholder like government. The result emphasize the important role of foreign ownership in contribute to restructuring the economy in the direction of industrialization and modernization, contribute to the development of skilled and highly qualified human resources, creating more jobs for laborers.It is an important source of revenue for the small state budget of developing countries, helping domestic businesses to open world commodity markets, helping domestic businesses to open world commodity markets and having the condition to acquire modern science and technology, advanced management experience and industrial working style.
In conlusion, doing research HOSE listed companies have a number of difficuties because of lack of time, require deeper academic knowledge and strong experience in this major.The conclusion made in order to create a larger situation about the affection of foreign ownership to stock return volatility.Therefore, managers can have better strategy and managment solution not only to help to manage their business but also create more opportunites to attract foreign investors especially in the open economy.