Institutional Monitoring, Motivated Investors, and Firm Performance

40 Pages Posted: 10 Dec 2018

See all articles by William G. Hardin

William G. Hardin

Florida International University (FIU) - College of Business Administration

Gregory Leo Nagel

Middle Tennessee State University

Kenneth Roskelley

Mississippi State University - Department of Finance & Economics

Philip Seagraves

Middle Tennessee State University

Date Written: November 16, 2018

Abstract

We examine the impact of institutional investors on REIT performance. The mere presence of institutional investors does not positively affect firm operations and value. However, the presence of motivated institutional investors does. The results show that firms with shares held by motivated institutional investors have higher future values, improved future funds from operations, retention of these funds, better cash management, reduced regression to the mean following superior performance, and fewer agency problems. The results also suggest that existing measures of institutional monitoring used in the literature may not fully capture effects related to institutional investment.

Keywords: Agency, Monitoring, Institutional Investor, Motivated, Returns, REIT

Suggested Citation

Hardin, William G. and Nagel, Gregory Leo and Roskelley, Kenneth and Seagraves, Philip, Institutional Monitoring, Motivated Investors, and Firm Performance (November 16, 2018). Journal of Real Estate Research, Vol. 39, No. 3, 2017. Available at SSRN: https://ssrn.com/abstract=3285939

William G. Hardin (Contact Author)

Florida International University (FIU) - College of Business Administration ( email )

Miami, FL 33199
United States

Gregory Leo Nagel

Middle Tennessee State University ( email )

P.O. Box 50
Murfreesboro, TN 37132
United States

Kenneth Roskelley

Mississippi State University - Department of Finance & Economics ( email )

Mississippi State, MS 39762
United States
662-325-1979 (Phone)

Philip Seagraves

Middle Tennessee State University ( email )

Murfreesboro, TN 37132
United States

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