scholarly journals CORPORATE STRATEGY DEVIATION AND INSTITUTIONAL INVESTOR RECOGNITION: COMPLEX NETWORK-BASED AND GRAPH CLUSTERING ANALYSIS

2021 ◽  
Vol 0 (0) ◽  
pp. 1-30
Author(s):  
Chunyan Lin ◽  
Jia Liu ◽  
Peide Liu

In this paper, the quantitative analysis is implemented on the relationship between strategy deviation of listed firms and institutional investors’ recognition. For research methodology, financial complex networks and clustering techniques are employed to measure the de-gree of recognition by creating links to the common stockholding behaviour of institutional investors. Besides, quarterly panel data from 2006 to 2020 are constructed for an innovative study of the degree of recognition of institutional investors’ strategy deviation of listed firms under different innovation fields, firm properties, and market style heterogeneity and asymmetry. The stability test is conducted by the transformation of the measures and methods, thereby effectively avoiding the “cluster fallacy”. We validate the mechanism by which the differences in strategic choices and propensities of listed firms affect capital market recognition, and enrich the microscopic research perspective and methodology on related issues.

2019 ◽  
Vol 8 (2) ◽  
pp. 131-146
Author(s):  
Thi Xuan Anh Tran ◽  
Quoc Tuan Le

Abstract This research examines the possible association between ownership structure and Vietnam listed companies’ dividend payout policy over the period of 2009 – 2015. We have investigated 642 listed firms in Hochiminh stock exchange and Hanoi stock exchange, using pannel data analysis. Ownership structure is described with two main sub-variables: ownership concentration and ownership composition. Specifically, the Herfindahl index (or H-index) was applied to measure the level of ownership concentration /dispersion for all major shareholders in the company, including the five biggest investors, corporate institutional investors, the ownership concentration level, and foreign investors. It has been observed that the H-index of all major shareholders has an average of less than 0.5 but the value of the H-index of institutional investors at 0.594 indicates that institutional investors are more likely to be concentrated in the hands of large institutional investors. The result showed linear relationship between institutional ownership and the dividend rate, but not statistically significant for the relationship between managerial ownership and dividend payout ratio.


2018 ◽  
Vol 64 (4) ◽  
pp. 135
Author(s):  
Eduardo Schiehll ◽  
Melissa Gerhard ◽  
Clea Beatriz Macagnan

<p>This study examines whether normative pressures from stock market regulators to improve the governance quality of Brazilian listed firms influence the participation and activism of institutional investors. More specifically, we investigate the association between institutional investor’s ownership and firm’s voluntary adhesion to the São Paulo Stock Exchange (B3) differentiated levels of corporate governance quality. Empirical testing is performed on a ten-year (2002–2011) panel data set from a sample of 439 firms listed on the B3. Our findings suggest that firms in differentiated corporate governance levels, that is, with better level of transparency and commitment to monitoring, are more attractive to institutional investors. We interpret this result as evidence supporting the shareholder activism movement, attributed by several scholars to institutional shareholders. Our study contributes to the governance literature on the firm’s response to normative pressures and the ability of internal governance mechanisms to signal lower agency cost to capital market. Our evidence also contributes to the ongoing discussion about the role and influence of institutional investors in the functioning of capital markets, and more specific in emerging market like Brazil.</p>


PLoS ONE ◽  
2021 ◽  
Vol 16 (4) ◽  
pp. e0249963
Author(s):  
Xiaoping Huo ◽  
Hongying Lin ◽  
Yanan Meng ◽  
Peter Woods

Guiding institutional investors to actively participate in corporate governance is a hot issue to improve the internal governance of China’s listed companies. This study seeks to provide a comprehensive understanding of the mechanism that underlies the governance effects of the heterogeneity of institutional investors on the cost of capital, and the influence of ownership structure on the relationship between them. Using an unbalanced panel data on A-share listed companies of Shanghai and Shenzhen in China’s capital market during the 2014–2019 period, this study reveals how institutional investors with longer holding period and higher shareholding ratio are negatively associated with the cost of capital in China’s capital market. Furthermore, this study successfully confirms the moderating effect of ownership structure in the relationship between institutional investors and the cost of capital. China’s state-owned enterprises are more likely to introduce improvements at the corporate governance level, and ownership concentration weakens the negative influence of institutional investors on the cost of capital. The research contributes to a deeper understanding of the impacts of institutional investor’s heterogeneity and ownership structure on the cost of capital in China. In the process, the study yields useful implications for the theory and practice of corporate governance.


1986 ◽  
Vol 58 (3) ◽  
pp. 951-956 ◽  
Author(s):  
Barbara Schaer ◽  
Landa Trentham

This cross-validated study focuses on the stability and replicability of the relationship between self-concept as measured by the Tennessee Self-concept Scale and job-related attitudes as measured by the Purdue Teacher Opinionnaire. A significant canonical correlation was obtained for the two sets of scales using two groups of 195 classroom teachers and accounted for 25% of the common variance. Canonical variate weights show that teachers derive greater emotional support from job satisfaction than from teachers' salary, school facilities, or rapport of teachers and principal. Given the clear sample-to-sample congruence, the conclusion is that the two instruments have a moderate relationship and that the opinionnaire shows some promise as a valid indicator of teachers' self-concept.


Yustitia ◽  
2019 ◽  
Vol 5 (1) ◽  
pp. 141-154
Author(s):  
Tri Setiadi

The politics of law in the field of Indonesian piracy associated with the function of banks as mutual fund agents in the capital market in the era of free trade must be able to accommodate the main objectives of regulating banking institutions, namely the stability of the banking institutions as described above. The involvement of banks as mutual fund agents must pay attention to risk management because mutual funds are investment products that have risks and can affect the relationship between the bank and its customers and have a large impact on public trust in the bank. The legal policy must be stated in the product of legislation that regulates banking and capital market investment in this case the involvement of banks in mutual funds. The law must be a guide in the relationship between banking institutions and society.


2018 ◽  
Vol 2 (7) ◽  
pp. 19
Author(s):  
Elijah Museve ◽  
Philip Mulama Nyangweso ◽  
Joel Tenai

Purpose: The purpose of the study was to determine the relationship between board characteristics and firm financial diversification (geographic sales) among listed firms on Nairobi securities exchange, Kenya: static panel approach.Methodology: Fisher and Levin-Lin-Chu tests were used to test the presence of unit root in the series under study. Hadri residual-based Lagrange multiplier test was used to determine the feasible model.Results: Results revealed existence of positive and significant relationship between interlock directorship and geographic diversification as positive and significant directors’ remuneration had a negative and significant effect on firm’s geographic sales, while operational risk negatively varied with geographic sales Agency Theory, free cash flow hypothesis Resource Based view theory provided theoretical framework. Directors’ remuneration negatively impacted geographic sales but did not explain diversification in relation to national sales. This study affirmed the managerial heuristics as determinant of firm financial diversification providing support to the convectional financial dimensions of firm performance particularly ROE, ROI and EPS.Unique contribution to theory, practice and policy: The Government of Kenya and Capital Market regulator should enact and implement legislations that guides on interlock directorship, directors remuneration diversity and tolerable operational risks as determinants of diversification


2018 ◽  
Vol 8 (2) ◽  
pp. 199-215 ◽  
Author(s):  
Hongquan Zhu ◽  
Lingling Jiang

Purpose Merton’s model of capital market equilibrium under incomplete information predicts that contemporaneous stock returns are positively related to investor recognition and that future stock returns are negatively related to investor recognition. The purpose of this paper is to empirically investigate whether Merton’s theory holds true for the Chinese stock market. Design/methodology/approach This paper proposes the degree of shareholder base growth (SBG) as a proxy for investor recognition and examines the relationship between investor recognition and stock returns through a univariate analysis and Fama-Macbeth cross-sectional regressions based on A-Share listed firms. Findings The results show that investor recognition is nonlinearly and positively related to contemporaneous stock returns and is negatively related to future stock returns in contrast to the conclusions of Merton’s theory. A long-short trading strategy that involves buying stocks with the lowest SBG rate and that sells stocks with the highest SBG rate will earn an average monthly return of 3.615 percent. Research limitations/implications Though Merton’s theory is not fully reflected in the Chinese stock market, investor recognition is considered an important risk factor in the Chinese stock market. Originality/value No works have yet investigated the validity of Merton’s “investor cognition hypothesis” in relation to the Chinese stock market. This paper strives to fill this gap.


1983 ◽  
Vol 53 (1) ◽  
pp. 83-92 ◽  
Author(s):  
John M. Curtis

The present discussion specifies a number of elements which seem to be involved in functional and pathological relationships. Since the stability of such relationships may be attributable to the manner in which “love” is transacted and interchanged, it seems advisable for the clinician to utilize a more precise set of criteria against which both adaptive and maladaptive relationships may be appraised and therapeutically managed. In this context, the judicious expression of the following elements of adaptive love relationships were identified: (a) needing, (b) giving, (c) romance, and (d) companionship. Similarly, the common determinants of maladaptive love relationships, i.e., (a) power, (b) possession, (c) protection, (d) pity, and (e) perversion, were also labeled and discussed together with therapeutic implications. With these specific elements the therapist may be more able to assess counter-productive patterns and promote the conditions under which qualitative changes in the relationship might be accomplished with improved speed and consistency.


2020 ◽  
Vol 8 (1) ◽  
pp. 12
Author(s):  
Thao Nguyen ◽  
Hui Li

This paper investigates the relationship between dividend payout and institutional ownership for all Australian listed firms in the period between 2001 and 2015. In our univariate tests, we find that institutional investors, in general, prefer dividend-paying firms more than non-paying firms, and for the dividend-paying firms in our sample, institutional investors hold more shares in the firms who pay higher dividends. We further explore the causality between dividend payout and institutional ownership in our multivariate tests with our panel data. The results show an insignificant effect of institutional ownership (dividend payout) on the future dividend payout (institutional ownership) while controlling for firms’ fundamentals, that a higher dividend yield does not attract more institutional investors and that there is no catering to Australian institutional investors.


2007 ◽  
Vol 5 (1) ◽  
pp. 131-138 ◽  
Author(s):  
Faten Lakhal

This paper investigates the relationship between ownership structure and voluntary earnings disclosures under high ownership concentration of French-listed firms. The findings show that French managers are less likely to make voluntary disclosures when they are controlled by a large shareholder or by a family, suggesting that low legal protection leads to expropriation of minority shareholders. The results also show that the proportion of foreign institutional investors in capital is likely to mitigate this relationship since institutional investors signal good minority shareholders’ protection to the market.


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