Institutional Ownership and Firms’ Thrust to Compete

This paper provides evidence on the impact of transient (short-term) institutional investors a firm's thrust to compete. A compete, as an attribute corporate culture, captures relative importance values that push firm achieve shareholder value in short term by emphasizing goal achievement, fast response external information and enhanced competitiveness. We find greater ownership results firms intensifying their future suggesting respond these investors’ preferences competitive pressures for achieving short-term creation. In line with our expectations, this effect is not observed long-horizon investors, who are incentivized place emphasis long-term over gains. Our findings reveal composition influences organizational culture non-homogeneous way. As such, we provide significant empirical insights ongoing debate implications arising from behind-the-scenes engagement management.