Title: Foreign ownership and stock market liquidity - evidence from Vietnam

Authors: Xuan Vinh Vo

Addresses: School of Banking, University of Economics Ho Chi Minh City and CFVG Ho Chi Minh City, 279 Nguyen Tri Phuong Street, District 10, Ho Chi Minh City, Vietnam

Abstract: This paper investigates the relationship between level of foreign ownership in a firm and the liquidity of the firm stock in the Vietnam stock markets. We employ a rich and detailed dataset representing foreign portfolio investment, liquidity and other firm attributes in the Vietnamese context. Our dataset ranges from 2006 to 2012 covering most of non-financial firms listed on Ho Chi Minh City stock exchange. Using a wide number of econometric techniques for panel data analysis, the results from our analysis indicate that increased foreign investment in firms is not associated with higher liquidity. The results also confirm the long term buy and hold strategy of foreign investors in Vietnam stock market.

Keywords: foreign ownership; stock market liquidity; stock markets; Vietnam; foreign investment; econometrics.

DOI: 10.1504/AAJFA.2016.074540

Afro-Asian Journal of Finance and Accounting, 2016 Vol.6 No.1, pp.1 - 11

Received: 17 May 2014
Accepted: 11 Feb 2015

Published online: 02 Feb 2016 *

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