Consistent with a bank-centered governance system, Japanese firms exhibit an exceptionally low level of performance variability. The increased involvement of foreign investors motivated by shareholder value is thus likely to have triggered a major shift in their risk-taking behavior. My results...

This study constructs a firm-level measure of large foreign ownership (LFO) and investigates its impact on stock return volatility in 31 emerging markets. We find a negative relationship between LFO and volatility, even after controlling for potential endogeneity and the impact of major domestic...

Full paper available at: "https://ssrn.com/abstract=3209976" https://ssrn.com/abstract=3209976 This Internet Appendix accompanies the paper "Foreign Ties that Bind: Cross-Border Firm Expansions and Fund Portfolio Allocation Around the World"