Foreign ownership and risk taking behavior: Empirical evidence from Vietnamese Listed firms
Abstract
This research investigates the effect of foreign ownership on corporate risk taking behavior. To measure risk taking, the study employs two different proxies: idiosyncratic risk and total risk. The study uses the GMM estimator of dynamic panel data models to deal with endogeneity . Using a comprehensive data set for firms listed on Hochiminh Stock Exchange and Hanoi Stock Exchange from 2007 to 2017 , the regression results show that foreign ownership increases corporate risk-taking. The results are consistent, regardless of how risk-taking is measured.