1998
DOI: 10.1016/s1062-9769(99)80106-9
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Institutional portfolio composition: An examination of the prudent investment hypothesis

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Cited by 22 publications
(24 citation statements)
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“…Institutions prefer firms with high turnover because this means that other investors find the stock attractive, indicating that it is a prudent investment. Previous studies find a positive relationship between institutional ownership and turnover ratio (Eakins et al, 1998). Research indicates that a portfolio with a high turnover rate has higher returns than a portfolio with low turnover (Rouwenhorst, 1999).…”
Section: Literature Reviewmentioning
confidence: 89%
See 1 more Smart Citation
“…Institutions prefer firms with high turnover because this means that other investors find the stock attractive, indicating that it is a prudent investment. Previous studies find a positive relationship between institutional ownership and turnover ratio (Eakins et al, 1998). Research indicates that a portfolio with a high turnover rate has higher returns than a portfolio with low turnover (Rouwenhorst, 1999).…”
Section: Literature Reviewmentioning
confidence: 89%
“…High turnover stocks are popular, and the literature indicates that institutional investors are interested in these popular stocks (Eakins et al, 1998;Hu, 1997). Risky stocks, however, do not show particular favor with institutional investors, particularly mutual funds (Del Guercio, 1996).…”
Section: Literature Reviewmentioning
confidence: 99%
“…Like Eakins, Stansell and Wertheim [8], they find that institutional investors tend to avoid extreme values of these indicators.…”
Section: Review Of Literaturementioning
confidence: 84%
“…Eakins, Stansell and Wertheim [8] examine the role of firm-specific factors (beta, and various financial indicators) in determining the investment of institutional investors. They find that financial institutions seem to avoid investments with extreme (both low and high) financial indicators, such as beta, return on assets and leverage.…”
Section: Review Of Literaturementioning
confidence: 99%
“…Institutions prefer to invest their "smart money" in companies with better visibility and transparency of earnings, revenues, and management. Eakins, Stansell, and Wertheim (1998) investigate the relationship between the level of institutional ownership and a number of company characteristics.…”
Section: "Smart Money"mentioning
confidence: 99%