The evidence reported in this paper suggests that institutional investors capture a large fraction of the short-run profits associated with IPOs. The favored status enjoyed by institutional investors in underpriced offerings appears, however, to carry a quid pro quo expectation that they will participate in less-attractive issues as well. This finding conforms with the Benveniste and Spindt (19...

Volume Weighted Average Price (VWAP) is widely used by institutional investors as benchmark for the execution of large equity orders. To meet the benchmark, investors have the possibility to either cross their orders in a non-intermediated electronic system or to submit a VWAP agency order to a broker. A design artifact addressing and solving the flexibility restrictions present in today’s VWAP...

We examine the value consequences of corporate social responsibility through the lens of institutional shareholders. We find a sharp asymmetry between corporate policies that mitigate the firm’s exposure to environmental risk and those that enhance its perceived environmental friendliness (“greenness”). Institutional investors shun stocks with high environmental risk exposure, which we show hav...

For the execution of large equity orders, institutional investors often use the Volume Weighted Average Price (VWAP) as a benchmark to measure execution quality. To achieve this, they have the possibility to either cross their orders in a non-intermediated electronic system or to submit a VWAP agency order to a broker that executes the orders manually. Though more expensive in explicit costs, i...

Business groups, the leading economic players in emerging economies, have responded to the market‐oriented transition primarily through corporate restructuring. Agency theory predicts that acquisition and divestiture would serve the interests of dominant families and foreign investors in different ways. Further, dominant families, foreign investors from shareholder‐based countries, and foreign ...

Over the last 35 years, the concentration of institutional assets in equity markets has increased dramatically. The stock ownership by the largest ten asset managers now accounts for 23.1% of total stock market capitalization, having quadrupled over this period. The paper asks whether idiosyncratic shocks to these institutions can spill over to their underlying holdings through their trading ac...

Technological innovations change the intermediation relationships within securities trading. Thus, the question arises which factors drive or hinder their adoption. This paper develops a model to evaluate institutional investors' intentions to adopt the meta-technology we call non-delegated order handling. It focuses on the usage of IT-driven trading systems which enable investors to control th...