Changes in Institutional Ownership and Stock Returns: Assessment and Methodology*

This study examines the economic implications of fair value liability gains and losses arising from the adoption of Statement of Financial Accounting Standards No. 159 (hereafter, FAS 159). We find a positive correspondence between a firm’s FAS 159 fair value liability gains and losses and current period stock returns, consistent with the notion that these gains and losses are priced by equity investors. However, further analysis indicates that fair value gains and losses from liabilities have a statistically significant negative association with future returns, suggesting that investors misprice this earnings component and subsequently correct the mispricing. We also find that the negative association for fair value gains is stronger for firms with lower levels of institutional ownership.

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The impacts of institutional ownership on stock returns

Empirical Economics ◽

10.1007/s00181-018-1519-3 ◽

2018 ◽

Vol 58 (2) ◽

pp. 507-533

Author(s):

Hongwei Chuang

Keyword(s):

Stock Returns ◽

Institutional Ownership

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Corporate Governance, Accounting Outcomes, and Organizational Performance

The Accounting Review ◽

10.2308/accr.2007.82.4.963 ◽

2007 ◽

Vol 82 (4) ◽

pp. 963-1008 ◽

Cited By ~ 720

Author(s):

David F. Larcker ◽

Scott A. Richardson ◽

I˙rem Tuna

Keyword(s):

Principal Component Analysis ◽

Corporate Governance ◽

Organizational Performance ◽

Executive Compensation ◽

Stock Returns ◽

Operating Performance ◽

Principal Component ◽

Institutional Ownership ◽

Stock Ownership ◽

Excess Stock Returns

The empirical research examining the association between typical measures of corporate governance and various accounting and economic outcomes has not produced a consistent set of results. We believe that these mixed results are partially attributable to the difficulty in generating reliable and valid measures for the complex construct that is termed “corporate governance.” Using a sample of 2,106 firms and 39 structural measures of corporate governance (e.g., board characteristics, stock ownership, institutional ownership, activist stock ownership, existence of debtholders, mix of executive compensation, and anti-takeover variables), our exploratory principal component analysis suggests that there are 14 dimensions to corporate governance. We find that these indices have a mixed association with abnormal accruals, little relation to accounting restatements, but some ability to explain future operating performance and future excess stock returns.

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Determinants of CEO Pay: A Comparison of ExecuComp and Non-ExecuComp Firms

The Accounting Review ◽

10.2308/accr.2010.85.5.1511 ◽

2010 ◽

Vol 85 (5) ◽

pp. 1511-1543 ◽

Cited By ~ 62

Author(s):

Brian Cadman ◽

Sandy Klasa ◽

Steve Matsunaga

Keyword(s):

Executive Compensation ◽

Stock Returns ◽

Institutional Ownership ◽

Stock Option ◽

Ownership Concentration ◽

Positive Relation ◽

Stock Liquidity ◽

Compensation Contracts ◽

Cash Compensation ◽

Ceo Pay

ABSTRACT: We document that firms included in the ExecuComp database tend to be larger, more complex, followed by more analysts, have greater stock liquidity levels, and have higher total, but less concentrated, institutional ownership than other firms. Based on these differences, we test and find support for three predictions. First, ExecuComp firms rely more heavily on earnings and stock returns in determining CEO cash compensation. Second, the weight on earnings is more sensitive to differences in the extent of growth opportunities for ExecuComp firms. Third, the positive relation between institutional ownership concentration and the value of stock option grants is stronger for ExecuComp firms. Overall, our results suggest that ExecuComp and non-ExecuComp firms operate in different contracting environments that lead to differences in the design of their executive compensation contracts. As a result, care should be taken in extending results based on ExecuComp samples to non-ExecuComp firms.

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PENGARUH GOOD CORPORATE GOVERNANCE TERHADAP SAHAM RETURN PERUSAHAAN PERBANKAN YANG TERCATAT DI BEI PERIODE 2016–2019 [THE INFLUENCE OF GOOD CORPORATE GOVERNANCE ON STOCK RETURNS OF BANKING COMPANIES LISTED ON IDX FROM 2016 TO 2019]

Milestone: Journal of Strategic Management ◽

10.19166/ms.v1i2.4368 ◽

2021 ◽

Vol 1 (2) ◽

pp. 125

Author(s):

Natalia Natalia ◽

Herlina Lusmeida

Keyword(s):

Corporate Governance ◽

Stock Returns ◽

Audit Committee ◽

Stock Exchange ◽

Linear Regression Analysis ◽

Institutional Ownership ◽

Multiple Linear Regression Analysis ◽

Managerial Ownership ◽

Purposive Sampling ◽

Good Corporate Governance

The purpose of this study is to analyze the effect of good corporate governance on stock returns. Return is the level of profit obtained by investors on investment activities. Good corporate governance used in this study is an independent board of commissioners, audit committee, managerial ownership, and institutional ownership. This research was conducted using the annual report documentation method of banking companies listed on the Indonesia Stock Exchange (IDX) from 2016 to 2019. The sampling method in this study was purposive sampling with the number of samples obtained is 106 samples. Data processing is done by quantitative method using multiple linear regression analysis. The results of the study show that the audit committee and institutional ownership have a negative and significant effect on stock returns, while independent commissioners and managerial ownership have no effect on stock returns.BAHASA INDONESIA ABSTRAKTujuan dari penelitian ini adalah untuk menganalisis pengaruh good corporate governance terhadap pengembalian saham. Return adalah tingkat keuntungan yang diperoleh investor atas kegiatan investasi. Good corporate governance yang digunakan dalam penelitian ini adalah dewan komisaris independen, komite audit, kepemilikan manajerial dan kepemilikan institusional. Penelitian ini dilakukan dengan metode dokumentasi laporan tahunan perusahaan perbankan yang terdaftar di Bursa Efek Indonesia (BEI) 2016–2019. Metode pengambilan sampel dalam penelitian ini adalah purposive sampling dengan jumlah sampel yang diperoleh sebanyak 106 sampel. Pengolahan data dilakukan dengan metode kuantitatif dengan menggunakan analisis regresi linier berganda. Hasil penelitian menunjukkan variabel komite audit dan kepemilikan institusional berpengaruh negatif dan signifikan terhadap return saham, sedangkan dewan komisaris independen dan kepemilikan manajerial tidak berpengaruh terhadap return saham.

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The Impacts Of Institutional Stock Ownership On Stock Returns And Performance: A Financial Market Perspective

Journal of Business & Economics Research (JBER) ◽

10.19030/jber.v3i3.2758 ◽

2011 ◽

Vol 3 (3) ◽

Author(s):

Johnston Osagie ◽

Gbolahan Solomon Osho ◽

Cynthia Sutton

Keyword(s):

Stock Returns ◽

Financial Market ◽

Stock Prices ◽

Stock Price ◽

Institutional Ownership ◽

Small Companies ◽

Font Size ◽

And Performance ◽

The Relationship ◽

Market Perspective

Recent studies indicate that corporations with high Institutional ownership have higher stock prices than those with less Institutional ownership. Even small companies with high Institutional ownership have higher stock prices in their range. Institutions have researchers and analysts to investigate the financials and the industry potential of the firms. As a result, the perception is that high institutional ownership indicates good value. This study investigates if the percentage of institutional ownership directly correlates with the price of stocks.  The relationship between the Institutional ownerships and price was prevalent. This was more indicative among the large cap stocks than the small caps stocks.  It was also found that the higher the percentage of Institutional ownership does reflect a higher stock price.  This was manifest among the large caps than the small caps.

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PENGARUH PERSEPSI TATA KELOLA DAN KARAKTERISTIK PERUSAHAAN TERHADAP RISK-TAKING BEHAVIOR INVESTOR DI PASAR SAHAM

Jurnal Riset Akuntansi dan Keuangan ◽

10.21460/jrak.2014.101.178 ◽

2014 ◽

Vol 10 (1) ◽

pp. 31

Author(s):

Wiwit Widyawati ◽

Triyono Triyono

Keyword(s):

Corporate Governance ◽

Stock Returns ◽

Risk Taking ◽

Stock Exchange ◽

Institutional Ownership ◽

Firm Characteristics ◽

Final Sample ◽

Sample Data ◽

Risk Taking Behavior ◽

The Relationship

This study examines the relationship between the corporate governance perception index and firm characteristics are proxied by institutional ownership , profitability (ROA), growth opportunities (growth sales) and size on the risk-taking behavior judged by market stock returns. The population are company that list in Indonesian Stock Exchange (IDX) and Indonesian Institute for Corporate Governance (IICG) from 2006-2012. Sample was collected based on purposive sampling and resulted in 91 companies as a final sample. Data was collected from Indonesian Capital market Directory (ICMD) and The Indonesian Institute for Corporate Governance (IICG). Its was analyzed with multiple regression analysis. The results indicated that corporate governance perception index, institutional ownership, growth sales and size have significant effect on investor’s risk-taking behavior. But ROA does not impact on investor’s risk-taking behavior. Keywords : corporate governance perception index, firm’s characteristic, risk-taking behavior.

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