Abstract We examine the relation between institutional investors’ horizons and bank transparency. The novelty of this research is to consider three important aspects transparency: disclosure quality, private information gathering auditor fees. find strong evidence indicating that banks dominated by long‐term (short‐term [ST]) shareholders exhibit higher (lower) levels quality. However, there no...

In this paper, we provide additional empirical evidence on the impact of institutional investors on stock return dynamics. The Polish pension system reform in 1999 and the associated increase in institutional ownership due to the investment activities of pension funds are exploited as an unique institutional characteristic. Performing a variant of the event study methodology in an asymmetric GA...

By building a game model between the institutional investors and the management, an analysis has been conducted to uncover the influential factors that are crucial to the role switching of institutional investors when confronting tunneling behaviors of the management: supervision cost, shareholding ratio, invisible income, fines and patience. In cases of lower supervision cost, higher sharehold...

Firms with high levels of institutional ownership are more likely to be acquired. This paper shows that this positive correlation is due to ownership endogeneity. Institutional investors are better informed investors and buy acquisition targets (“selection”). After controlling for this ownership endogeneity, the presence of institutional investors reduces the probability of being acquired. Evid...

This research extends agency theory by exploring the influence of varied, competing, principal interests on executive actions. Findings reveal that ownership of a firm by dedicated institutional investors, who hold concentrated portfolios over time, is positively associated with firm use of strategic competitive actions. Ownership by transient institutional investors, who hold broad portfolios ...

Using a large proprietary database of institutional trades for the period 1999-2005, this paper examines the interim (i.e., intra-quarter) trading skills of institutional investors. We find strong evidence that institutional investors earn significant abnormal returns on their intra-quarter round-trip trades. Furthermore, the stocks institutions buy significantly outperform the stocks instituti...

This study constructs a panel threshold regression model to explore the price impact of foreign institutional herding of firms listed in the Taiwan Stock Exchange during January 2000 to June 2008. Our panel threshold model is constructed to explore the price impact of foreign institutional investors’ herding in the Taiwan stock market after controlling the firm size. By examining the presence o...