Journal of Banking & Finance Vol. 31 No. 6 2007
The impact of institutional ownership on corporate operating performance
open access
Abstract
This paper examines the relation between institutional investor involvement in and the operating performance of large firms. We find a significant relation between a firm’s operating cash flow returns and both the percent of institutional stock ownership and the number of institutional stockholders. However, this relation is found only for a subset of institutional investors: those less likely to have a business relationship with the firm. These results suggest that institutional investors with potential business relations with the firms in which they invest are compromised as monitors of the firm.
- DOI
- 10.1016/j.jbankfin.2006.08.006
- Volume
- 31
- Issue
- 6
- Pages
- 1771-1794
- Language
- en
- Sources
- crossref openalex bibtex:phds-export.bib