Post by fireopal on Jun 30, 2009 7:19:54 GMT 4
Corporate Governance and Institutional Ownership
Kee H. Chung
SUNY at Buffalo - School of Management
Hao Zhang
SUNY at Buffalo - School of Management
Journal of Financial and Quantitative Analysis (JFQA), Forthcoming
Abstract:
In this study we examine the relation between corporate governance and institutional ownership. Our empirical results show that the fraction of a company’s shares that are held by institutional investors increases with the quality of its governance structure. In a similar vein, we show that the proportion of institutions that hold a firm’s shares increases with its governance quality. Our results are robust to different estimation methods and alternative model specifications. These results are consistent with the conjecture that institutional investors gravitate to stocks of companies with good governance structure to meet fiduciary responsibility as well as to minimize monitoring and exit costs.
papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1409222_code57683.pdf?abstractid=1409222&mirid=1
Kee H. Chung
SUNY at Buffalo - School of Management
Hao Zhang
SUNY at Buffalo - School of Management
Journal of Financial and Quantitative Analysis (JFQA), Forthcoming
Abstract:
In this study we examine the relation between corporate governance and institutional ownership. Our empirical results show that the fraction of a company’s shares that are held by institutional investors increases with the quality of its governance structure. In a similar vein, we show that the proportion of institutions that hold a firm’s shares increases with its governance quality. Our results are robust to different estimation methods and alternative model specifications. These results are consistent with the conjecture that institutional investors gravitate to stocks of companies with good governance structure to meet fiduciary responsibility as well as to minimize monitoring and exit costs.
papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1409222_code57683.pdf?abstractid=1409222&mirid=1