The Effect of Institutional Ownership on Firm Performance: The Case of U.S. Listed Shipping Companies

31 Pages Posted: 28 Feb 2019

See all articles by Dimitris A. Tsouknidis

Dimitris A. Tsouknidis

Athens University of Economics and Business

Date Written: December 2018

Abstract

This paper examines the relationship between institutional ownership and firm performance for US listed shipping companies using quarterly 13F reports of institutional holdings over the period 2002 to 2016. Traditionally, public shipping companies exhibit a large concentration of ownership as specific individuals and families hold large percentages of the total shares outstanding. However, institutional investors also hold a substantial percentage of ownership of U.S. listed shipping firms, whose effects on firm performance have not been examined previously in the literature. Results reveal a negative relationship between the percentage of institutional ownership and firm performance, which is primarily attributed to non-strategic rather than strategic institutional investors. This result survives a set of panel data estimators which take into account the presence of dynamic endogeneity in the relationship examined.

Keywords: Institutional Ownership; Firm Performance; Dynamic Panel Data; Dynamic Endogeneity; U.S. Listed Shipping Companies

JEL Classification: G32; G34

Suggested Citation

Tsouknidis, Dimitris A., The Effect of Institutional Ownership on Firm Performance: The Case of U.S. Listed Shipping Companies (December 2018). Available at SSRN: https://ssrn.com/abstract=3332362 or http://dx.doi.org/10.2139/ssrn.3332362

Dimitris A. Tsouknidis (Contact Author)

Athens University of Economics and Business ( email )

76 Patission Street
GR-104 34 Athens
Greece

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
332
Abstract Views
1,585
rank
113,627
PlumX Metrics