The Influence of Insiders and Institutional Investors on Firm Performance

Hsiu-I Ting ()
Additional contact information
Hsiu-I Ting: Department of Money and Banking, National Kaohsiung First University of Science and Technology, No. 1, University Rd., Yanchao Dist., Kaohsiung City 824, Taiwan, R.O.C.

Review of Pacific Basin Financial Markets and Policies (RPBFMP), 2013, vol. 16, issue 04, 1-38

Abstract: Guided by the evidence that insiders and institutional investors are better informed, I comprehensively investigate the trading behavior and ownership of insiders and institutional investors in Taiwan in an attempt to differentiate between the two types of investors. Insiders gain profits from their filing of selling shareholdings and institutional investors acquire abnormal returns from block trades. Insider and institutional ownership both show positive effects on performance. Firms with high institutional ownership have higher performance, but not lower volatility. The results remain by considering the endogeneity issue and alternative measures of performance. These findings provide evidence that the efficient monitoring effect is more significant than the convergence of interest effect.

Keywords: Insiders; institutional investors; ownership; efficient monitoring hypothesis; convergence of interest hypothesis; G30; G32; G34 (search for similar items in EconPapers)
JEL-codes: G1 G2 G3 (search for similar items in EconPapers)
Date: 2013
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0219091513500276
Access to full text is restricted to subscribers

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:wsi:rpbfmp:v:16:y:2013:i:04:n:s0219091513500276

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0219091513500276

Access Statistics for this article

Review of Pacific Basin Financial Markets and Policies (RPBFMP) is currently edited by Cheng-few Lee

More articles in Review of Pacific Basin Financial Markets and Policies (RPBFMP) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().