| Summary: | 博士 === 元智大學 === 管理學院博士班 === 105 === This paper studies holding and net trading of institutional investors for the firms that are filed for bankruptcy. We find that institutional investors tend to avoid holding shares on bankruptcy firms prior to bankruptcy. These results suggest institutional investors disclose warning information to the other investors by selling shares on bankrupt firms. In two years prior to bankruptcy, the firm with lower operating cash flow, less liquidity, low quick ratio and smaller market value of equity. If the firm could not repay short-term debts, it may lead to corporate fall into financial difficulty, and different type of institutional investors significantly reduced holdings that high likelihood of bankruptcy filing in future. The one year pre-filing, the large proportion change of shares is sold by different type of institutions, resulting in increased likelihood of bankruptcy, especially small institutions. The increase different ownership changes lead the firm more likely survive, especially block and top5 institutions. Pre-filing, the firms with lower profitability, less liquidity, and smaller market value of equity are more likely to file for bankruptcy. In contrast, the firms with higher profitability, less more liquidity, and large market value of equity are more likely to survive.
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