Informed foreign ownership and firm performance
| Qt+1 | Qt+2 | Qt+3 | Qt+4 | Qt+5 | |
|---|---|---|---|---|---|
| Panel A. Full sample | |||||
| AFIt | 0.54*** | 0.43** | 0.35* | 0.36** | 0.28 |
| (2.67) | (2.08) | (1.77) | (1.95) | (1.52) | |
| lnTAt | 5.33*** | 4.87*** | 4.55*** | 4.20*** | 3.83*** |
| (16.73) | (15.29) | (14.34) | (13.31) | (12.15) | |
| Leveraget | −50.40*** | −50.79*** | −50.23*** | −48.56*** | −46.66*** |
| (−21.85) | (−21.42) | (−20.93) | (−20.33) | (−19.49) | |
| lnAget | −5.77*** | −4.26*** | −1.92** | −0.21 | −1.36** |
| (−7.53) | (−5.19) | (−2.43) | (−0.30) | (1.94) | |
| CAPEXt | 101.38*** | 98.82*** | 99.12*** | 93.48*** | 88.61*** |
| (14.84) | (14.36) | (13.86) | (13.96) | (13.10) | |
| SGAt | −0.02 | −0.02 | −0.03* | −0.03** | −0.02** |
| (−0.83) | (−0.66) | (−0.84) | (−2.41) | (−2.30) | |
| at | 29.93*** | 33.10*** | 29.32*** | 29.02*** | 29.77*** |
| (4.63) | (4.86) | (4.32) | (4.38) | (4.44) | |
| N | 13,215 | 12,569 | 11,943 | 11,473 | 10,978 |
| Panel B. Nonfinancial-firm sample | |||||
| AFIt | 0.53*** | 0.42** | 0.33* | 0.33** | 0.26 |
| (2.53) | (1.98) | (1.65) | (1.68) | (1.35) | |
| Controlst | yes | yes | yes | yes | yes |
| N | 12,643 | 12,018 | 11,413 | 10,965 | 10,493 |
| Q | Q | Q | Q | Q | |
|---|---|---|---|---|---|
| AFI | 0.54*** | 0.43** | 0.35* | 0.36** | 0.28 |
| (2.67) | (2.08) | (1.77) | (1.95) | (1.52) | |
| lnTA | 5.33*** | 4.87*** | 4.55*** | 4.20*** | 3.83*** |
| (16.73) | (15.29) | (14.34) | (13.31) | (12.15) | |
| Leverage | −50.40*** | −50.79*** | −50.23*** | −48.56*** | −46.66*** |
| (−21.85) | (−21.42) | (−20.93) | (−20.33) | (−19.49) | |
| lnAge | −5.77*** | −4.26*** | −1.92** | −0.21 | −1.36** |
| (−7.53) | (−5.19) | (−2.43) | (−0.30) | (1.94) | |
| CAPEX | 101.38*** | 98.82*** | 99.12*** | 93.48*** | 88.61*** |
| (14.84) | (14.36) | (13.86) | (13.96) | (13.10) | |
| SGA | −0.02 | −0.02 | −0.03* | −0.03** | −0.02** |
| (−0.83) | (−0.66) | (−0.84) | (−2.41) | (−2.30) | |
| 29.93*** | 33.10*** | 29.32*** | 29.02*** | 29.77*** | |
| (4.63) | (4.86) | (4.32) | (4.38) | (4.44) | |
| 13,215 | 12,569 | 11,943 | 11,473 | 10,978 | |
| AFI | 0.53*** | 0.42** | 0.33* | 0.33** | 0.26 |
| (2.53) | (1.98) | (1.65) | (1.68) | (1.35) | |
| Controls | yes | yes | yes | yes | yes |
| 12,643 | 12,018 | 11,413 | 10,965 | 10,493 | |
Note(s): This table reports the results of Equation (2) where Tobin’s q is used as the proxy for the firm performance. The AFI is the abnormal foreign investment, estimated as the residuals from Equation (1). The other variables are explained in Section 2. Controls are control variables used in Equation (2). All financial firms (including financial, banking and insurance services according to the Vietnam Standard Industrial Classification, VSIC) are deleted from the nonfinancial-firm sample. The subscript t indicates the current quarter. We use the two-step GMM model. z-statistics in the parentheses. *, ** and *** indicate statistical significance at the 10, 5 and 1% levels, respectively
Source(s): Authors' own work