scholarly journals The Nonlinear Relation between Institutional Ownership and Environmental, Social and Governance Performance in Emerging Countries

2021 ◽  
Vol 13 (3) ◽  
pp. 1586 ◽  
Author(s):  
Jennifer Martínez-Ferrero ◽  
María-Belén Lozano
Keyword(s):  
Institutional Investors ◽  
Critical Mass ◽  
Institutional Ownership ◽  
Emerging Countries ◽  
Nonlinear Relationship ◽  
Environmental Disclosure ◽  
Significant Percentage ◽  
Nonlinear Relation

This paper examines how the level of institutional ownership affects environmental, social, and governance (ESG) performance in emerging countries by jointly investigating a nonlinear relationship. By examining an international sample composed of 17,318 firm–year observations from the period 2012–18 for 16 emerging countries, our findings reveal that the ESG performance of firms located in emerging countries depends on the level of influential institutional ownership, and displays a U-shaped relation, particularly for environmental disclosure. Institutional investors with low ownership are less likely to promote higher ESG performance in emerging countries, although this effect is attenuated when institutional ownership reaches a significant percentage, constituting a critical mass.

scholarly journals Impact of Institutional Investment Pattern on Stock Volatility: A Study of BSE-30 Companies

2016 ◽  
Vol 3 (1) ◽  
Author(s):  
Harendra Singh
Keyword(s):  
Institutional Investors ◽  
Institutional Ownership ◽  
Stock Volatility ◽  
Institutional Investment ◽  
Investment Pattern ◽  
Institutional Holdings ◽  
The Mind ◽  
The Impact

<p>There are many studies found in the field of stock volatility and institutional investors. Most of the studies found an inconsistent relationship between volatility and institutional investors. It creates a curiosity in the mind of investor, whether riskier securities attract institutional investors or an increase in institutional holdings results in an increase in volatility.</p><p><br />In this paper we tried to examine the impact of institutional ownership pattern on stock volatility. We have considered BSE-30 companies and taken 5 year data from 1st January 2009 to 1st January 2014. Our result shows that institutional ownership has positive and significant impact on stock volatility.</p>

scholarly journals Pengaruh Dimensi Pengungkapan Corporate Social Responsibility Terhadap Future Institutional Ownership

2016 ◽  
Vol 17 (1) ◽  
pp. 91
Author(s):  
Rizky Eriandani
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Institutional Investors ◽  
Positive Impact ◽  
Investment Decisions ◽  
Measurement Instrument ◽  
Institutional Ownership ◽  
Manufacturing Companies ◽  
Csr Disclosure ◽  
Corporate Social

<em>Corporate social responsibility practice becomes important subject in company`s activity, because it will affect the company's reputation. Besides, institutional investors likely prefer to invest in companies that have a social responsibility as it is considered to increase the legitimacy and future performance. This study aims to investigate the effect of CSR disclosure on institutional ownership. We use percentages ownership to measure institutional ownership. CSR measurement instrument used in this study adopted a previous research. The instrument comes from research Hackston and Milne, which was adjusted with Bapepam regulation in Indonesia. We also divided CSR disclosures in four sub-dimensions. The samples used in this research were 115 listed agriculture, mining, and manufacturing companies in indonesian Stock Exchange which studied during the years of 2010. Using SPSS 20, The analysis methods of this research used multiple regression analysis. Studies shows that not all dimensions of CSR disclosure effect on institutional ownership. Only product dimensions of CSR disclosures has a significant positive impact on institutional ownership. However, this paper fail to find any significant impact of another CSR dimensions. Thus, our study suggests that the dimensions of the product can affect investment decisions. In contrast, institutional investors have not focused on environment, employee relation, and community activities in investment decisions.</em>

scholarly journals Board structure and institutional ownership at the time of IPO

2017 ◽  
Vol 43 (9) ◽  
pp. 950-965 ◽  
Author(s):  
Suman Neupane ◽  
Biwesh Neupane
Keyword(s):  
Institutional Investors ◽  
Critical Time ◽  
Institutional Ownership ◽  
Board Independence ◽  
Board Structure ◽  
Data Set ◽  
Content Type ◽  
Institutional Holdings ◽  
Foreign Institutional Investors ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of mandatory regulatory provisions on board structure and the influence of such board structure on institutional holdings. Design/methodology/approach The study uses unique hand-collected data set of Indian IPOs during the 2004-2012 period after the corporate governance reforms with the introduction of clause 49 in the listing agreements in 2001. Using OLS regression, the paper empirically analyses the determinants of board size and board independence at the time of the IPOs and the influence of such a board structure on shareholdings by domestic and foreign institutional investors. Findings The authors find that complying with mandatory regulatory provisions does not impede firms from structuring their boards to reflect the firms’ advising and monitoring needs. The authors also find that complying with provisions have positive implication for the firm, as firms with greater board independence appear to attract more foreign institutional investors. Originality/value To the authors’ best knowledge, this is the first study to examine the issue in a regime where regulation mandates the composition of the board of directors. The paper also extends the literature on institutional holdings by providing evidence on the impact of board structure on institutional ownership at a critical time in a firm’s life cycle when concerns for endogeneity for empirical investigations are weaker.

Foreign Institutional Investors and Corporate Voluntary Disclosure Around the World

2019 ◽  
Vol 94 (5) ◽  
pp. 319-348 ◽  
Author(s):  
Albert Tsang ◽  
Fei Xie ◽  
Xiangang Xin
Keyword(s):  
Institutional Investors ◽  
Voluntary Disclosure ◽  
Home Country ◽  
Investor Protection ◽  
Institutional Ownership ◽  
Management Forecasts ◽  
Disclosure Requirements ◽  
The World ◽  
Foreign Institutional Investors ◽  
The Impact

ABSTRACT We examine the impact of foreign institutional investors on firms' voluntary disclosure practices measured by management forecasts. In a sample of 32 non-U.S. countries, we find that, on average, foreign institutional investments lead to improved voluntary disclosure, and their impact is larger than that of domestic institutional investors. These results are more pronounced when foreign institutional investors (1) are unfamiliar with the firm's home country, (2) have longer investment horizons, and (3) are from countries with stronger investor protection and disclosure requirements than the firm's home country. However, we also find some evidence of voluntary disclosure deterioration in firms with foreign institutional investors from countries with inferior disclosure requirements and securities regulations and with concentrated foreign institutional ownership. Overall, our results suggest that the relation between foreign institutional investors and voluntary disclosure is much richer and more complex than what has been documented for domestic institutional investors in the literature.

Subsidiary ownership decisions by bank holding companies

2019 ◽  
Vol 12 (3) ◽  
pp. 425-444
Author(s):  
Wenling Lu ◽  
Wan-Jiun Paul Chiou
Keyword(s):  
Institutional Investors ◽  
Fixed Effects ◽  
Institutional Ownership ◽  
Bank Holding Companies ◽  
Best Interest ◽  
Content Type ◽  
Holding Companies ◽  
Short Period ◽  
The Usa ◽  
The Impact

Purpose This study aims to examine the intertemporal changes in the institutional ownership of publicly traded bank holding companies (BHCs) in the USA. The role of owned-subsidiary investing in the portfolio decisions is investigated as compared to unaffiliated banks and non-bank institutional investors. Design/methodology/approach The authors apply panel regressions that control bank-fixed and time-fixed effects to study the impact of prudence, liquidity, information advantages and historical returns on each type of the institutional ownership from 1986 to 2014. Findings The subsidiary banks tend to invest in more shares of their parent BHCs when they are traded for a short period of time and when they have low-market risk, low turnover, a low capital equity ratio and great reliance on off-balance activities. However, the impact of these determinants of institutional ownership is opposite for unaffiliated banks and non-bank institutions. Research limitations/implications This study provides evidence that the criteria used by subsidiary banks to invest in their parent company stock are different than the unaffiliated banks and non-bank institutions, raising concerns about the owned-subsidiary investing activities and banks’ trustees’ duty to work in the best interest of their trust clients. Originality/value This paper provides a comprehensive analysis of the level and market value of BHC institutional ownership over the past three decades and the impact of different determinants on the ownership of BHCs by subsidiary banks, unaffiliated banks and non-bank institutional investors.

Investor Reaction to Going Concern Audit Reports

2010 ◽  
Vol 85 (6) ◽  
pp. 2075-2105 ◽  
Author(s):  
Krishnagopal Menon ◽  
David D. Williams
Keyword(s):  
Institutional Investors ◽  
Institutional Ownership ◽  
Audit Report ◽  
Going Concern ◽  
New Information ◽  
Debt Covenant ◽  
Low Levels ◽  
Audit Reports ◽  
Investor Reaction ◽  
Larger Sample

ABSTRACT: The literature provides mixed evidence on whether investors find audit reports modified for going concern reasons to be useful. Using a substantially larger sample than previous studies, we observe negative excess returns when the going concern audit report (GCAR) is disclosed. We find that the reaction is more negative if the GCAR cites a problem with obtaining financing, suggesting that the GCAR provides new information to investors. Also, the reaction is more adverse if the GCAR triggers a technical violation of a debt covenant that restricts the firm from getting a GCAR. The evidence suggests that institutional investors drive the reaction to the GCAR, since there is no detectable reaction at low levels of institutional ownership. The market reaction gets more negative as the level of institutional ownership increases, and there is a decline in institutional ownership after the GCAR is issued. We attribute these results to sophisticated investors’ awareness of the firm’s financing needs and the covenants carried by the firm’s debt.

scholarly journals The association between institutional ownership and the likelihood of the firm reporting non-recurring charges

2009 ◽  
Vol 7 (1) ◽  
pp. 363-369
Author(s):  
Uma Velury ◽  
Gregory Kane
Keyword(s):  
Institutional Investors ◽  
Institutional Ownership ◽  
The Media ◽  
Corrective Actions ◽  
Management Reporting

This paper examines the association between the level of institutional ownership and the likelihood of the firm reporting non-recurring or unusual charges. The increase in the magnitude and frequency of one-time charges has caused confusion and debate in the media (WSJ 2001). This paper posits that increased monitoring on the part of influential stakeholders (e.g., institutional investors) causes management to take corrective actions which leads to the reporting of these charges. If this is the case, non-recurring charges may be informative and value-relevant in the sense that they signal restructuring activity that will likely improve the degree of efficiency in which corporate assets are invested. The results support the hypothesis and indicate that the likelihood of management reporting non-recurring charges is positively and significantly associated with the level of institutional ownership.

scholarly journals Corporate governance, profitabilitas, leverage, dan pengaruhnya terhadap pengungkapan sosial dan lingkungan

2019 ◽  
Vol 2 (2) ◽  
Author(s):  
Nurnika Asri Dewi
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Institutional Ownership ◽  
Multiple Linear Regression Analysis ◽  
Building Construction ◽  
Environmental Disclosure ◽  
Construction Companies ◽  
Social And Environmental Disclosure

AbstractThis study aims to analyze the effect of corporate governance, profitability, and leverage on social and environmental disclosure. The data in this study are 40 property, real estate, and building construction companies listed on the Indonesia Stock Exchange during 2014-2016, so there are 120 observational data. The hypothesis in this study was tested using multiple linear regression analysis with the application of SPSS version 23. The results of this study indicate that institutional ownership, audit committee, and leverage have an effect on social and environmental disclosure. Meanwhile, the independent board of commissioners and profitability has no effect on social and environmental disclosure. Keywords : corporate governance. profitability, leverage, Social and Environment Disclosure Index (SEDI)

scholarly journals Institutional ownership and firm’s dividend policy

2008 ◽  
Vol 5 (2) ◽  
pp. 128-136 ◽  
Author(s):  
Weiyu Guo ◽  
Jinlan Ni
Keyword(s):  
Institutional Investors ◽  
Dividend Policy ◽  
Empirical Test ◽  
Institutional Ownership ◽  
Tax Credits ◽  
Industrial Firms ◽  
Dividend Policies ◽  
Dividend Payments ◽  
Retail Investors ◽  
Deferred Tax

This paper examines the linkage between dividend policy and institutional ownership within the context of the dividend model of Allen, Bernardo and Welch (2000). Specifically, it provides an empirical test of Allen, Bernardo and Welch (2000)’s novel implication that a tax differential between institutions and retail investors effects dividend policies. Using merge data of US industrial firms from 1980-2002, our results indicate that the dividend paying decision is positively related with institutional ownership. That is, firms with higher institutional ownership are more likely to be dividend payers. Further, we find that the deferred tax or tax credits that the institutional investors own significantly contribute to the dividend initiation decision as well as the level of dividend payments

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