earticle

영어

The purpose of this paper is to analyze financial productivity characteristics of foreign investor's stock ownership and to compare those with Korean institutional investors in the Korean stock market. By using a dataset during 1999～2003, we are able to characterize the determinant factors of foreign investors and Korean institutional investors. Foreign investors allocate a disproportionately high share of their funds to large firms, high Tobin’s Q, large ROA, low turnover ratio, low capital concentration firms. In other words, foreign investors like high financial productivity firms. But liquidity ratio, leverage ratio, dividend payout ratio, systematic risk, export ratio are not statistically significant. Further, we attempt to investigate the relationship between foreign investors and Korean institutional investors. Both like large firms and low capital concentration firms. Interestingly, Korean institutional investors display different pattern in some variables as compared to foreign investors. Especially, foreign investors pay regard to such factors as ROA, turnover ratio, PER, but Korean institutional investors give consideration to BE/ME factor.