Do Shareholder Preferences Affect Corporate Policies?
This paper examines the preferences of institutional investors for firm policies and the relationship between these preferences and firm decisions. I find that institutions exhibit systematic differences in their preferences for financial and investment policies of the firms they invest in. Furthermore, these preferences are related to subsequent changes in the financial and investment policies of firms. In particular, a firm is more likely to decrease (increase) its leverage ratio if its current leverage is higher (lower) than the preferences of its institutional shareholders. Overall, the evidence suggests that the preferences of institutional shareholders are important determinants of corporate policies.
Johan Sulaeman
Edwin L. Cox School of Business Southern Methodist University
国际会议
广州
英文
1-54
2009-07-07（万方平台首次上网日期，不代表论文的发表时间）