Institutional Investors’ Investment Horizon and Corporate Investment

• Main Authors: Pai, Shu-Yuan, 白舒媛
• Other Authors: Cheng, Lee-Young
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/6v8juf

碩士 === 國立中正大學 === 財務金融研究所 === 102 === This paper investigates how institutional investors influence on firms’ investment policies and stock performance. Using institutional turnover level to capture investor’s trading horizons, we find that an increase in the holding period of institutional investors is associated with a subsequent decrease (increase) in real investment of firm’s that over- (under-) investment. Both of the situations represent that the firms’ capital expenditure becomes better. More importantly, firms with long-term institutional investors are associated with higher stock performance. Overall, the evidence indicates that long-term institutional investors can influence managers’ capital expenditure decisions and lower agency problems effectively.