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Author: Tripti Nashier
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
The role of institutional investors in corporate governance is widely recognized. This study investigates whether institutional investors are active monitors or passive investors by examining the relationship between institutional ownership and firm performance for a sample of 11,136 firm-year observations from 1,392 non-financial firms listed on the BSE from 2007 to 2014. It employs panel data regression models and instrumental variables regression using generalized method of moments to control for unobserved heterogeneity and possible endogeneity of ownership variables. The results reveal that institutional ownership has a positive impact on firm performance. Institutional ownership is disaggregated into domestic and foreign institutional ownership and it is observed that both the categories positively affect the firm performance. The findings suggest that institutional investors, whether domestic or foreign, are able to monitor managements' actions and decisions effectively and help to improve firm performance. It also finds the relationship between institutional ownership and firm performance to be endogenous.
Author: Tripti Nashier
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
The role of institutional investors in corporate governance is widely recognized. This study investigates whether institutional investors are active monitors or passive investors by examining the relationship between institutional ownership and firm performance for a sample of 11,136 firm-year observations from 1,392 non-financial firms listed on the BSE from 2007 to 2014. It employs panel data regression models and instrumental variables regression using generalized method of moments to control for unobserved heterogeneity and possible endogeneity of ownership variables. The results reveal that institutional ownership has a positive impact on firm performance. Institutional ownership is disaggregated into domestic and foreign institutional ownership and it is observed that both the categories positively affect the firm performance. The findings suggest that institutional investors, whether domestic or foreign, are able to monitor managements' actions and decisions effectively and help to improve firm performance. It also finds the relationship between institutional ownership and firm performance to be endogenous.
Author: Yusheng Cen
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
In this thesis, I analyze the roles of different institutional investors and how they affect firm performance based on a global dataset of 31 countries (regions) from 2007 to 2016. Breaking down institutions by geographic information (domestic or foreign) and type (such as mutual fund or pension funds), I first find that all institutions share preference for large firms, firms that experienced negative stock returns, and firms with lower leverage and high liquidity. I also find that various types of institutional investors affect firms' operating performance differently. The relation is convex for foreign institutions, while the opposite is true for domestic institutions. This indicates that foreign institutional investors exert better corporate governance when ownership is high, while domestic institutions are subject to business ties with firms when they hold substantial amounts of voting rights. Further analysis reveals a U-shaped relationship between firms' operating performance and the ownership level of investment advisors/bank trusts/pension funds, indicating a monitoring effect with high levels of ownership. However, mutual funds exhibit a concave influence on firm value, signifying negative impact of business ties when ownership is high. The findings for other types of institutions (hedge fund and insurance companies) are inconclusive.
Author: Michael J. Rubach
Publisher: Routledge
ISBN: 1000525007
Category : Business & Economics
Languages : en
Pages : 200
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Book Description
First Published in 2000. This book examines the shareholder activism of institutional investors and the effect of shareholder activism on portfolio performance. Institutional shareholder activism includes both traditional mechanisms of influence (e.g., filing shareholder proposals) and relationship investing (e.g., long-term interorganizational contacts between owners and a corporation’s top managers).
Author:
Publisher:
ISBN:
Category : Finance
Languages : en
Pages : 292
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Book Description
Author: Prasad S. Bhattacharya
Publisher:
ISBN:
Category :
Languages : en
Pages : 33
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Book Description
This paper investigates the relationship between different classes of institutional investors and firm performance. Using industry level data from Finland, which is characterized by various institutional investors who own multiple ownership stakes in different firms across a broad spectrum of industries, the paper exhibits two novelties. First, unlike previous studies which treated institutional investors as a monolithic group, we segment them in classes. Second, we recognize the joint determination of firm performance and institutional ownership. We account for this issue in the context of a system of equations, using three stage least squares methodology. The empirical results suggest a significant two-way feedback between firm performance and institutional equity ownership. However, this effect is not symmetric. We find that institutional investors with likely investment and business ties with firms have adverse (negative) effect on firm performance and the impact is very significant in comparison to the negative effect of firm performance on institutional ownership.
Author: Michael Farrell
Publisher:
ISBN:
Category :
Languages : en
Pages : 88
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Book Description
This study examines the relationship between institutional ownership and firm performance using a sample of 567 Canadian firms in 2011. The focus on the Canadian firms provides additional insight towards the topic of institutional ownership as a remedial measure towards agency problems, since Canada has shared legal traditions with the United States, but has ownership concentration more comparable to levels in Western Europe and Asia. A distinguishing feature of this study's analysis involves the consideration of institutional investor by type as well as the inclusion of the number of such investors as a measure of ownership. The effects of institutional ownership on performance measures Tobin's Q, Industry-Adjusted Tobin's Q, and Return on Assets are estimated using ordinary least squares (OLS) and two-stage least squares (2SLS) methodology, where the latter is employed to offset the endogeneity bias to which the OLS method is susceptible. Although several relationships emerged between institutional ownership levels and measures of Tobin's Q in the OLS regression, only a negative relationship between both the percentage and the number of insurance company investors, was observed to be significant once estimated simultaneously under the 2 SLS method. For all measures of performance, Hausman tests reveal that OLS results are biased in multiple instances; meaningful interpretation must rely on the 2 SLS results.
Author: OECD
Publisher: OECD Publishing
ISBN: 9264116052
Category :
Languages : en
Pages : 78
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Book Description
This report reflects long-term, in-depth discussion and debate by participants in the Latin American Roundtable on Corporate Governance.
Author: Dimitris A. Tsouknidis
Publisher:
ISBN:
Category :
Languages : en
Pages : 31
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Book Description
This paper examines the relationship between institutional ownership and firm performance for US listed shipping companies using quarterly 13F reports of institutional holdings over the period 2002 to 2016. Traditionally, public shipping companies exhibit a large concentration of ownership as specific individuals and families hold large percentages of the total shares outstanding. However, institutional investors also hold a substantial percentage of ownership of U.S. listed shipping firms, whose effects on firm performance have not been examined previously in the literature. Results reveal a negative relationship between the percentage of institutional ownership and firm performance, which is primarily attributed to non-strategic rather than strategic institutional investors. This result survives a set of panel data estimators which take into account the presence of dynamic endogeneity in the relationship examined.
Author: Hamidon Katan
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
Author: Alqatan, Ahmad
Publisher: IGI Global
ISBN: 1799848531
Category : Business & Economics
Languages : en
Pages : 425
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Book Description
After the global financial crisis, the topic of corporate governance has been gaining momentum in accounting and finance literature since it may influence firm and bank management in many countries. Corporate Governance and Its Implications on Accounting and Finance provides emerging research exploring the implications of a good corporate governance system after global financial crises. Corporate governance mechanisms may include board and audit committee characteristics, ownership structure, and internal and external auditing. This book is devoted to all topics dealing with corporate governance including corporate governance characteristics, board diversity, CSR, big data governance, bitcoin governance, IT governance, and governance disclosure, and is ideally designed for executives, BODs, financial analysts, government officials, researchers, policymakers, academicians, and students.
