The impact of institutional investors on firms' performance in the context of financialization

Alexiou, Constantinos; Mohamed, Abdulkadir; Nellis, Joseph G.

doi:10.1002/ijfe.1790

Cited by 24 publications

(15 citation statements)

References 47 publications

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“…The study finding supports the work of authors in [68,69] who established a negative association between institutional ownership and financial performance. This finding contradicted the work of [51,63,[65][66][67] who found a positive relationship between institutional ownership and firms' financial performance. In addition, the finding of this study contradicted the work of [3,59] who observed that high firm's financial performance is deemed to be associated with institutional ownership which provides high quality management and improved corporate governance in the firms.…”

Section: Ownership Structures and Return On Assetscontrasting

confidence: 99%

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Section: Ownership Structures and Return On Assetscontrasting

confidence: 99%

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“…The attention paid to financialization and short-seller demonstrates the research focus on the institutional investor behaviors in a finance context. For example, Alexiou et al (2021) investigate the impact of U.K. institutional holdings on the financialization process. Shi et al (2018) build on threat rigidity theory to develop arguments about the behavioral consequences of short-sellers.…”

Section: Popular Institutional Investor Research Topics and Trendsmentioning

confidence: 99%

A bibliometric review on institutional investor: current status, development and future directions

Ding

Zhao

Wang

2021

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PurposeIn order to further understand the research status and prospect, the purpose of this paper is to adopt a novel method in the research field of institutional investor to depict the knowledge structure and the evolution path over the past three decades.Design/methodology/approachBased on the 4,194 records retrieved from Web of Science, Citespace combined with VOSviewer are employed to perform visualized analysis.FindingsThe results reveal that the number of published articles of research on institutional investor has an exponential growth. Although the United States is the most significant contributor with more publications compared with other countries, Malaysia and Nigeria show higher centrality in the research network worldwide. Furthermore, “shareholder activism”, “corporate governance”, “global convergence”, “corporate reporting regulation” and “individual investor” are the largest five knowledge clusters. “Media coverage”, “corporate social responsibility” and “stock price crash risk” are the latest three knowledge clusters. Moreover, “governance worldwide”, “institutional character”, “dynamic information environment”, “investment patterns” and “sustainable development” are the potential extended research fields in the future.Originality/valueThis research helps the scholars and participants to capture the knowledge structure of research on institutional investors and to develop a reference to future opportunities.

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“…Similarly, studies using fixed effect, random effect, and GMM model found that the institutional investors also have a positive influence when they are the second-largest investor in family-owned companies, and they also contribute positively to the financial performance of the companies in the early years [71][72]. One study claims that institutional investors are the leading cause of the financialization process for UK firms [73]. Recent studies on listed companies of the Pakistan Stock Exchange show a mix (positive, no) relationship between institutional investors and firms using the GMM model [74][75].…”

Section: Institutional Investorsmentioning

confidence: 99%

Do corporate governance structure and capital structure matter for the performance of the firms? An empirical testing with the contemplation of outliers

Wang

Ramzan

2020

PLoS ONE

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A superlative combination of the Board of Directors (BOD) with diverse members is considered a sign of a good governance structure. Meanwhile, the key decision taken by BOD to make organizations profitable is the capital structure with the optimal mix of debt and equity. Unfortunately, previous literature has reported this relationship with a mixed trend, which may be due to research gaps in the statistical analysis. Moreover, it also shows that the relationship between them has not yet been fully predicted and can still be completely understood. This study contains time-variant and time-invariant variables, and these variables usually have an outlier's problem. As we know that the OLS estimators are more sensitive to react adversely to this problem, yet we have not received enough evidence from similar researches that cares about it. Consistent with these arguments, this study focuses primarily on exploring the influence of corporate governance structure and the capital structure on firms' market-oriented and accounting-based performance, especially with the contemplation of outliers. Hypotheses have been evaluated using M-estimators and S-estimators of robust regression for 45 listed firms for the period from 2013 to 2017. The findings reveal that the governance structure of firms with BOD, independent director, institutional investors, audit committee and female directors accelerates its performance. Further, we find that the leverage ratio improves accounting performance, but it has a downward impact on the share prices of listed firms. Our study contributes to the prevailing literature by proving that the kind of governance structure that based on diverse expert members and a capital structure with a high volume of debt is of utmost importance to the performance of firms as a whole.

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The impact of institutional investors on firms' performance in the context of financialization

Cited by 24 publications

References 47 publications

Untitled

Untitled

A bibliometric review on institutional investor: current status, development and future directions

Do corporate governance structure and capital structure matter for the performance of the firms? An empirical testing with the contemplation of outliers

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