|
|
|
|
||||
|
||||
The Impact of Institutional Ownership on Corporate Operating PerformanceMarcia Millon Cornettaffiliation not provided to SSRN Alan J. MarcusBoston College - Department of Finance Anthony SaundersNew York University - Leonard N. Stern School of Business Hassan TehranianBoston College - Department of Finance November 2003 NYU Working Paper No. FIN-03-033 Abstract: This paper examines the relationship between institutional investor involvement in and the operating performance of large firms. We confirm a significant relationship between a firm s operating cash flow returns and both the percent of institutional stock ownership and the number of institutional stockholders. However, the positive relationship between the number of institution al investors holding stock and operating cash flow returns is found only for pressure-insensitive institutional investors (those with no business relationship with the firm). The number of pressure-sensitive institutional investors (those with an existing or potential business relationship with the firm) has no impact on performance. These results suggest that institutional investors that need to protect actual or promote potential business relationships with firms in which they invest are compromised as monitors of the firm, and lend credence to calls for greater independence of board members from firms.
Number of Pages in PDF File: 39 working papers seriesDate posted: November 11, 2008Suggested CitationContact Information
|
|
||||||||||||||||||||
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
FAQ
Terms of Use
Privacy Policy
Copyright
This page was processed by apollo6 in 0.391 seconds
