Investor horizons and corporate policies under uncertainty

Christian Dreyer and Oliver Schulz

Review of Financial Economics, 2022, vol. 40, issue 1, 5-19

Abstract: In this study, we examine the differences in Investment, Employment, and Share repurchase sensitivities to uncertainty between firms with varying investor horizons. We test for these effects using two macro‐based uncertainty measures (Baker et al., 2016; Ahir et al., 2018). The results show that in uncertainty times, greater short‐term investor ownership is associated with less investment and hiring, and more net share buybacks. These findings are consistent with the preference of short‐horizon investors of seeking to divest in the near future, thus, wanting to maximize current stock prices.

Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1002/rfe.1129

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:revfec:v:40:y:2022:i:1:p:5-19

Access Statistics for this article

More articles in Review of Financial Economics from John Wiley & Sons
Bibliographic data for series maintained by Wiley Content Delivery ().