EconPapers    
Economics at your fingertips  
 

Do institutional blockholders influence corporate investment? Evidence from emerging markets

Roberto Alvarez (), Mauricio Jara and Carlos Pombo ()

Working Papers from University of Chile, Department of Economics

Abstract: This paper examines the relation between firm investment ratios and institutional blockholders for a sample of 6,300 publicly traded firms in 16 large emerging markets for the 2004–2016 period. Results show that independent, long-term, and local institutional investors boost investment ratios, which is consistent with the monitoring role and blockholder voice intervention hypotheses. The presence of institutional blockholders, regardless of their monitoring involvement, reduces firmcash flow sensitivity ratios and thus reduces firms’ financial constraints. Minority institutional investors complement the positive effect of blockholders investors. However, the effect on financial constraints decreases as the quality of the country's institutions increases.

Pages: 48 pages
Date: 2018-09
New Economics Papers: this item is included in nep-bec and nep-sbm
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://econ.uchile.cl/uploads/publicacion/1cb0d352 ... 490e385e3e211349.pdf

Related works:
Journal Article: Do institutional blockholders influence corporate investment? Evidence from emerging markets (2018) Downloads
Working Paper: Do institutional blockholders influence corporate investment? Evidence from emerging markets (2017) Downloads
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:udc:wpaper:wp469

Access Statistics for this paper

More papers in Working Papers from University of Chile, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Mohit Karnani ().

 
Page updated 2020-09-14
Handle: RePEc:udc:wpaper:wp469