Political Connection and Foreign Investors'' Stockholding : Evidence from Taiwan

• Main Authors: Chung-Fu Lin, 林勁甫
• Other Authors: 戚永苓
• Format: Others
• Language: zh-TW
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/9g52hc

碩士 === 國立中興大學 === 財務金融學系所 === 106 === The thesis using sample of Taiwanese companies listed on the Taiwan 50 and Medium 100 Index from 1994 to 2016. The thesis studies the relationship between political connection and foreign investors'' holding rate, the analysis reveals that: (1) Firms with political connections have lower foreign investors'' stockholding in their ownership structures ;(2) Foreign investors hold less in political connections'' firms despite of the political parties that the firms are affiliated with ;(3) Conditional on having political connection, the positive relation is stronger for firms with political- connected CEOs, indicating that the firms have clear goals and political position, the firms suffer from lower agency cost and attract foreign investors ;(4) The negative relation between political connection and foreign stockholding is not affected by election period ;(5) We proxy firms nearsightedness using the firms'' tax avoidance behavior. However we do not find significant differential effects for firms that are more nearsighted .