Role Of Stock Market Development In Relationship Between Foreign Ownership And Profitability Of Asean Countries

This research is aimed to examine effect of stock market development on relationship between foreign ownership and profitability in ASEAN. Research samples are 491 manufacture firms listed in stock market of Thailand Singapore Philippines Indonesia and Malaysia from 2012-2013. With regression analysis this research find that stock market development have effect on relationship between foreign ownership and profitability in ASEAN. Stock market development as a function of indicator of investor mood legal and policy making and management practices support foreign shareholder role in profits increasing. This research shows new evidence of role of macro economics level factor which is stock market development in ASEAN countries as foreign owners role supporting in profits increasing. Stock market development is important factor to answer inconsistencies of role of foreign owner since foreign ownership will be more growing up in open market between countries in profits increasing.