This paper investigates the effect of foreign ownership on corporate investment efficiency in an emerging market.,This paper employs the investment-investment opportunities sensitivity to proxy for investment efficiency. Corporate investment and investment opportunities are measured by capital expenditure and Tobin's Q respectively. Control variables include state ownership, firm profitability, cash flow, financial leverage, firm size, bank debt, asset tangibility and financial distress. The research sample includes 5,502 firm-years from 621 firms listed in Vietnamese stock market from 2007 to 2017.,We find that foreign ownership negatively affects corporate investment efficiency. Furthermore, we continue to examine the effects of foreign ownership with financially unconstrained and constrained firms that are classified based on the annual medians of Kaplan and Zingales (1997) score, firm size and dividend payout ratio. We find that the negative relationship between foreign ownership and investment efficiency is stronger in financially unconstrained.,Prior research shows that foreign ownership is positively related to corporate investment efficiency. However, in Vietnamese stock market, foreign investors may prefer safe business activities as a response to uncertainty in the business environment, ineffective legislations on corporate governance and their informational disadvantage. Therefore, in this paper, we argue that foreign ownership negatively affects Vietnamese firms' investment efficiency. Risk-adverse foreign investors make firms lose some profitable investment opportunities and thus decrease their investment efficiency.

中文翻译：

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外资所有权和投资效率：来自新兴市场的新证据

本文研究了外资所有权对新兴市场企业投资效率的影响。本文采用投资-投资机会敏感性来代表投资效率。企业投资和投资机会分别以资本支出和托宾 Q 衡量。控制变量包括国家所有权、企业盈利能力、现金流、财务杠杆、企业规模、银行债务、资产有形性和财务困境。研究样本包括 2007 年至 2017 年在越南股市上市的 621 家公司的 5,502 家公司年。我们发现外资所有权对公司投资效率有负面影响。此外，我们继续研究外资所有权对财务不受约束和受约束的公司的影响，这些公司根据 Kaplan 和 Zingales (1997) 得分的年度中位数、公司规模和股息支付率进行分类。我们发现，在财务不受约束的情况下，外资所有权与投资效率之间的负相关关系更强。已有研究表明，外资所有权与企业投资效率正相关。然而，在越南股票市场，外国投资者可能更喜欢安全的商业活动，以应对商业环境的不确定性、公司治理立法的无效及其信息劣势。因此，在本文中，我们认为外资所有权对越南企业的投资效率有负面影响。