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Using a cross-country setting, we document differences in the relation between earnings quality and the two components of trading volume around earnings announcements, one related to differential interpretation of the earnings signal and the other related to pre-event differential information precision. We find that in countries with stronger investor protection, less corrupt governments, and more liquid stock markets, a noisier earnings signal increases differential interpretation of the earnings signal but decreases investors' incentive for information acquisition before earnings announcements, leading to lower pre-event differential information precision. However, these trading patterns flip in countries with weaker investor protection, more corrupt governments, and less liquid stock markets. We also find that institutional investors in countries with stronger institutions are likely to benefit more from their superior information processing skills, leading to more information acquisition both at and before earnings announcements. Overall, our study adds to the literature by documenting significant cross-country variations in investors' trading volume reactions to earnings quality. [ABSTRACT FROM AUTHOR]

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The debate over the impacts of shareholder value orientation on corporate management has been more intense with the increasing participation of institutional investors in companies' ownership structures. In this context, the purpose of this study is to evaluate the influence of institutional investors' shareholding on the payment of dividends in the oil industry. A regression model was used, estimated with the Generalized Method of Moments. The results indicated that the distribution of dividends is related to the profitability and the leverage of the companies, in addition to the history of distribution to shareholders. In general, the presence of institutional investors did not influence the dividend distribution. However, we observed a large participation of these investors in the ownership structure of companies in the oil and gas sector—the average control of these agents was around 25% in the companies of the sample. This study contributes to the literature regarding the influence of institutional investors on the corporate decisions of nonfinancial companies, being original in the context of the oil industry. [ABSTRACT FROM AUTHOR]

Following the Global Settlement, analysts extensively use a top pick designation allowing for greater granularity of information among buy recommended stocks, but conflicts of interest can potentially influence this designation. Examining a novel sample of top picks, we find that a calendar-time portfolio of top picks generates an abnormal performance of 17.6% per year. Top picks have greater investment value than do buy recommendations and alternative analyst investment strategies. Both institutional and retail investors trade in response to top picks. However, only institutional investors appear to identify top picks that have greater investment value when they are announced. [ABSTRACT FROM AUTHOR]

Using the exclusion of business development companies (BDCs) from stock indexes, this paper studies the effectiveness of market discipline in the direct lending space. Amid share sell-offs by institutional investors, a drop in BDCs' valuations limits their ability to raise new equity capital. Following this funding shock, BDCs do not adjust their capital structure. At the same time, they are reducing the risk exposure of their portfolios. We document a greater reduction in risk for BDCs subject to stronger market discipline from their debtholders. BDCs pass through the capital shock to their portfolio firms by reducing their investment intensity. [ABSTRACT FROM AUTHOR]

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This article investigates the relationship between the share of assets held by institutional investors relative to GDP and a synthetic index of union bargaining power in 20 OECD countries from 1980 to 2017. Findings from the use of fixed-effects OLS and instrumental variables regressions show that the share of assets held by institutional investors, especially insurance companies and pension funds, is correlated with a decline in union bargaining power. The authors argue that by contributing to significant changes in corporate strategies and governance through potential effects on jobs and wages, institutional investors in most OECD countries may have weakened the influence of trade unions, thereby leading to a higher decentralization of wage bargaining. Mixed evidence is found, however, when investigating the role of complementarity across institutions to explain cross-country heterogeneity. [ABSTRACT FROM AUTHOR]

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Corporate risk-taking (CRT) is crucial for sustainable business development. The focus of this study is to examine the relationship between components of ESG performance (ESGP) and corporate risk-taking. We conduct an empirical analysis using CSI ESG score data of A-share listed companies on the Shanghai and Shenzhen stock exchanges from 2009 to 2022. The conclusions are as follows: (1) ESGP exerts a facilitating effect on CRT. Specifically, environmental performance inhibit CRT, whereas social responsibility and corporate governance performance enhance CRT. (2) The facilitating effect of ESGP on CRT is more pronounced at lower levels of equity concentration. (3) ESGP enhances CRT by increasing the level of innovation and institutional investor shareholding. The contribution of this study is to help firms change CRT by adjusting the components of ESGP. [ABSTRACT FROM AUTHOR]

A growing body of literature has documented the entry of institutional investors into the single-family rental (SFR) market in the United States since the Great Recession. However, less research has delved into differences between investors, particularly public real estate investment trusts (REITs) and private equity (PE) firms. In this paper, we analyze the single-family rental market in the Minneapolis, Minnesota, area and compare spatial strategies and eviction outcomes of various types of SFR landlords, including national investment firms and non-institutional investor owners. We analyze and compare the spatial strategies of different types of landlords including local landlords categorized by size as well as national investors including REITs, PE, and rent-to-own firms. Through multivariate modeling, we find that even after controlling for other factors, owner type and portfolio size are correlated with eviction rates. Compared to tenants living in homes owned by micro landlords (1 property), we estimate that tenants in REIT- and PE-owned properties were 26% more likely and 17% more likely to receive an eviction filing, respectively. Residents of large, non-institutional investor-owned homes were 9% more likely to receive an eviction filing compared to micro-operator owned units. This research adds to our understanding of the SFR market and how tenant outcomes may differ across various ownership dimensions. [ABSTRACT FROM AUTHOR]

The article is devoted to the formation of scientifically based recommendations on the application of administrative and legal forms and methods of countering violations of public interests in the activities of institutional investors. The author separates the concepts of preventing violations and countering violations of public interests in the activities of institutional investors, indicating that the prevention of violations of public interests takes place when certain shortcomings or problems are identified in their work, which potentially carry a risk of violating the rights of citizen investors, but at a specific moment do not yet pose a threat of violation or are not a violation of public interests. In contrast to prevention, counteraction conditionally assumes the existence of a certain illegal action, as a result of which a situation arises when the interests of citizen-depositors and the institutional investor (his officials) do not coincide, and the private business or selfish interest of individuals begins to dominate over the public interest. According to the author, the system of countermeasures includes such forms of management activity as: issuance of normative legal acts, execution of legally significant actions, which are implemented through such methods as administrative supervision, administrative control, bringing to legal responsibility. Special laws define a number of measures that can be applied to institutional investors for violations, in particular, the suspension or cancellation of a license, the prohibition of the payment of dividends, an injunction and much more, which allows for the timely protection of public interests and the prevention of encroachment on public values, because criminal activity undermines the existing legal order of investment activities of institutional investors and in general the trust of citizen-investors in the state, in its ability to protect their values, entrusted to entities authorized by the state to preserve and multiply them. [ABSTRACT FROM AUTHOR]

The technology sector serves as a fundamental pillar for all industry sectors in the economy, playing a central role in driving worldwide economic growth. It particularly distinguishes itself in the U.S., representing approximately one-third of the global technology market. However, the technology sector is not a homogenous group of similarly focused companies, its industries vary significantly in their characteristics. This paper analyzes the relationships among U.S. technology industries defined by the Global Industry Classification Standard using Vine copulas and transfer entropy. It spans 1 January 2010–31 January 2024, to clarify intra-sectoral heterogeneity and identify key industries predicting the performance of others. Our findings highlight the predictive power of the semiconductor industry, with significant information transmission to all other industries. Contrarily, the flow in the opposite direction is significant in only 3 of 5 cases. The identification of semiconductors’ central role is particularly valuable for both retail and institutional investors concentrating on technology stocks, as it may indicate future developments in the entire sector. Moreover, due to the industry’s global importance, shocks in the semiconductor industry could propagate across the entire technology sector, leading to broader economic instability. Therefore, the semiconductor industry should be closely monitored by the policymakers too. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to provide a novel explorative perspective on fund managers' decisions under uncertainty. The current COVID pandemic is used as a unique reference frame to study how heuristics are used in institutional financial practice. Design/methodology/approach: This study follows a grounded theory approach. A total of 282 diverse publications between October 2019 and October 2020 for 20 German mutual funds are qualitatively analyzed. A theory of adaptive heuristics for fund managers is developed. Findings: Fund managers adapt their heuristics during a crisis and this adaptive process flows through three stages. Increasing complexity in the environment leads to the adaption of simplest heuristics around investment decisions. Three distinct stages of adaption: precrisis, uncertainty and stabilization emerge from the data. Research limitations/implications: This study's data is based on publicly available information. There might be a discrepancy between publicly stated and internal reasoning. Practical implications: Money managers can use the provided framework to assess their decision-making in crises. The developed adaptive processes of heuristics can assist capital allocators who choose and rate fund managers. Policymakers and regulators can learn about the aspects of investor decisions that their actions and communication address. Teaching can use this study to exemplify the nature of financial markets as adaptive systems rather than static structures. Originality/value: To the best of the author's/authors' knowledge, this study is the first to systematically explore the heuristics of professional money managers because they navigate a large-scale exogenous crisis. [ABSTRACT FROM AUTHOR]

Research Question/Issue: We examine the effect of multiple environmental, social, and governance (ESG) scores on institutional investor ownership of firms and investor portfolio weightings. We are also the first to analyze the three individual components of ESG rankings to estimate the relative preferences of institutional investors. Research Findings/Insights: Using a unique panel dataset covering US companies and institutional investor portfolios over the 2010–2019 period, we find that while investors are driven to add high‐quality ESG companies to their portfolios, there is a negative relationship with ESG when it comes to taking large ownership stakes. Furthermore, ESG scores are negatively related to the portfolio weightings of institutional investors, which raises concerns of greenwashing. Our analysis of individual ESG scores points to significantly larger effects of G scores in terms of holdings, and G is the only score with no negative impact on portfolio weightings. Finally, in support of systematic stewardship theory, top institutional investors allocate higher proportions of their portfolios to firms with high‐ESG ratings. Our results are robust to the use of a difference‐in‐differences analysis addressing endogeneity concerns. Theoretical/Academic Implications: The findings in this paper offer important policy implications for institutional investors, managers, and policymakers. Given the ongoing debate on ESG scores, this paper shows the importance of examining greenwashing for investors who have a concern regarding the extent to which the valuation of assets might be influenced by unsupported sustainability claims. In addition, our study adds to the debate regarding ESG investing and stewardship theory. [ABSTRACT FROM AUTHOR]

This paper investigates the promotion effects of institutional investors' communication on corporate green innovation. We use content analysis to identify the efficiency of institutional investors' communication, and find that institutional investors' communication promotes corporate green innovation. The mechanism analysis indicates that institutional investors' communication improves managers' awareness of green transformation, promotes corporate green investment efficiency and mitigates the extent of greenwashing. The positive impacts of institutional investors' communication are more effective on corporate utility patents than on invention patents. Such green governance effects are more pronounced in non-state-owned firms, green investors and close-distance to the institutional investors. By introducing exogenous shocks of the New Environmental Protection Law and China's regional carbon emissions trading market pilots, we find that the impact of institutional investors' communication on green innovation is enhanced after the implementation of environmental policies. Overall, our research contributes to the existing literature on institutional investors' green activism and the factors of green innovation, and also enriches the cross-disciplinary research on environmental regulation affecting institutional investors' green governance. [ABSTRACT FROM AUTHOR]

This paper constructs an institutional investor network based on the heavy holdings of the same stock in China and conducts a social network analysis to investigate the influence of this network on stock price volatility from the perspectives of network structure (density) and location (centrality). The study demonstrates that institutional investor network density is negatively related to stock price volatility, while network centrality is positively related to it. Mechanism analyses further reveal that network density reduces stock price volatility by mitigating private information arbitrage behavior among institutional investors, whereas network centrality increases stock price volatility by creating private information arbitrage opportunities within the network. Additionally, the paper finds that information asymmetry enhances the positive effect of network centrality on stock price volatility. These findings are generally consistent across subsample analyses for different market states, reactions to good and bad news, and types of equity ownership, as well as in other robustness tests. The practical implications of these findings are significant for market stability regulation. [ABSTRACT FROM AUTHOR]

Theoretical models predict that the threat of outside blockholder exit can mitigate agency problems and force managers to undertake actions that would maximize firm value in the long run. We examine whether the institutional blockholder exit threat curbs managerial misbehavior and short-termism reflected in real earnings management. Our study exploits a natural experiment—the Polish pension fund reform of 2013 that encouraged pension funds to trade more actively and imposed a real threat of exit on their portfolio companies. Using a difference-in-differences approach, we provide evidence that the reform significantly decreased the level of real earnings management in "treated" companies, that is, companies with open-ended pension funds (OFEs) playing the role of blockholders. The effect was more significant for firms in a multiple blockholder setting, firms under common ownership, and firms with higher insider's stakes. Moreover, we confirmed that treated companies that decreased real earnings management in the post-reform period experienced the increased long-term operating performance. [ABSTRACT FROM AUTHOR]

SUMMARY: We study the effect of borrower-lender cross-ownership on the demand for a borrower's external audit quality in syndicated loan settings. Cross-owners, which are institutional investors who hold the equities of both the borrower and the lead lender of syndicated loans, have the ability and incentive to increase the economic benefits accruing to both contracting parties. We hypothesize that cross-owners demand high-quality audits of the borrower's financial information as a delegated monitoring device to resolve the agency cost of debt and improve contract efficiency. Our evidence shows that cross-ownership is positively associated with higher borrower audit fees, our proxy for audit quality. We also find that the effect is more pronounced for larger loans. Overall, these results suggest that cross-owners view external audits to be a viable monitoring mechanism for improving overall debt contacting efficiency. Data Availability: Data are available from the public sources cited in the text. JEL Classifications: M42; M48. [ABSTRACT FROM AUTHOR]

Although the rapid development of the Internet has infinitely shortened the distance between economic agents, geographic distance is still an important factor affecting information acquisition and interpersonal interactions between them. Using data on Chinese A‐share listed companies from 2009 to 2020, we explore the relationship between geographic concentration of institutional investors and environmental, social, and governance (ESG) performance. Our findings indicate that investors' geographic concentration has an inverted U‐shaped influence on ESG performance, and high‐speed railway and institutional environment weaken the negative influence of geographic concentration of institutional shareholders, leading to a flatter inverted U‐shaped relationship. As high‐speed railway and institutional environment further flatten the curve, the inverted U‐shaped relationship will eventually become U‐shaped, and a "shape‐flip" occurs. Our research offers a new perspective on the factors impacting corporate ESG performance, enriching institutional investor characteristics, and having practical significance for improving ESG performance. [ABSTRACT FROM AUTHOR]

The importance of green innovation in global sustainable development is increasingly recognized. Literature has documented that enhancing external oversight can improve green innovation performance. However, few studies systematically investigate the relationship between external supervisory behavior and green innovation. This study employs a game‐theoretic model to examine the relationship between institutional investors' site visits (SVs) and green innovation. Using a unique dataset covering SVs from 2012 to 2021, empirical findings reveal that institutional investors' SVs are dramatically favorable to green innovation performance, particularly among stress‐resistant institutional investors. More broadly, SVs by institutional investors with higher shareholdings and stronger reputations exhibit a substantial response to green innovation. Similarly, institutional investors' SVs significantly boost the green innovation of firms with inadequate environmental disclosure. Additional analysis documents that the quality improvement of green innovation significantly increases after institutional investors conduct more than three SVs in a calendar year. This study proposes that policymakers should improve the institutional environment for site visits, and enterprises can strategically involve institutional investors to enhance external monitoring mechanisms. The theoretical and practical implications of this contribute to boosting green innovation capabilities. [ABSTRACT FROM AUTHOR]

Based on the theory of social network, this paper studies the relationship between institutional investor clique and audit quality. Existing literature has found that institutional investors and audit quality are positively correlated. 1 Based on the data of Shanghai and Shenzhen A-share listed companies from 2010 to 2020, this paper examines the relationship between institutional investor clique and audit quality. The result shows that the higher the ratio of shares held by institutional investor clique, the higher the audit quality. The influence mechanism shows that institutional investor clique can affect audit quality by alleviating information asymmetry. The mechanism provides new empirical evidence for the governance effect of institutional investor clique and contributes to understand the governance effect of institutional investor clique. [ABSTRACT FROM AUTHOR]

This study shows that, unlike the positive role played by other institutional investors documented in the literature, venture capital (VC) in pursuit of short‐term gains through exit strategies reduces the stock price informativeness of portfolio companies, especially when VC is associated with a higher level of the ability (longer‐term VC directors, large VC syndicate), incentive (private VC sponsors), and willingness (less reputable VCs) to manipulate information. Furthermore, internal and external monitoring helps mitigate the negative impact of VC on stock price informativeness. Finally, earnings management and reduced information disclosure mediate the relationship between VC involvement and stock price informativeness. [ABSTRACT FROM AUTHOR]

Despite the increase in institutional investor shareholdings in emerging market firms, their impact on R&D investments has received scant attention in the literature. By integrating agency and resource dependence perspectives, we examine the role of different types of institutional investors and their interactions with board interlocks in shaping their preference for R&D investment in their portfolio firms. We test our hypotheses on a sample of 2,478 Indian firm‐year observations from 2005 to 2019, using various estimation techniques. Our results indicate that different categories of institutional investors have distinct preferences for R&D investment. Specifically, we find that ownership by both foreign institutional investors and mutual fund investors negatively impacts R&D investments in firms. While board interlocks positively moderate the impact of institutional investors such as banks and financial institutions and foreign institutional investors on R&D investments in firms, this moderation is negative in the case of mutual fund investors and R&D investments in firms. We contribute to the understanding of the determinants of R&D investments in emerging market firms, with a specific focus on institutional investor ownership and add to the nascent literature on the interaction between two forms of governance, i.e., ownership and board characteristics, in shaping this firm strategy. [ABSTRACT FROM AUTHOR]

AbstractThe 2010s were an era of abundant capital for investors but limited opportunities to put it to profitable use. This paper traces the origins of dealing with the ‘problem’ of having to convert large accumulations of cash into appreciating assets. It puts venture capitalists in the US at the center of this history. Charting venture capital’s 1950s emergence, 1960s formalization, and 1970s institutionalization, I show how early venture capital investors built a financial infrastructure that safeguarded the appreciation of their assets. Venture capitalists’ influence increased as institutional investors (as funders) and startup employees (as investees) became enrolled in this infrastructure and oriented their actions toward its imperatives. I argue that in their handling of abundance, venture capitalists constructed and deepened asset-driven inequalities. Empirically, the paper makes a contribution by demonstrating that vast accumulations of (personal) wealth played a decisive role in this process and highlights the importance of stark inequality well before the neoliberal turn or quantitative easing. Conceptually, I show that venture capitalists’ solution to a personal problem became useful at a much larger scale. The paper argues that we should read this influence as conditioned on elite surplus and access to a financial infrastructure. [ABSTRACT FROM AUTHOR]

Foreign investors' transaction volume in the Tokyo Stock Exchange has grown steadily in the past three decades, and Japanese stocks have become a familiar instrument for international diversification. Rebalancing trades in a local national market by foreign institutional investors holding multi-country asset portfolios, often heavily represented by U.S. stocks, amplify the national market's stock index co-movements with the U.S. This paper examines the extent to which greater participation of foreign investors is associated with increases in the unconditional correlation of daily returns between the U.S. (S&P 500) and Japan (TOPIX). A Gaussian copula marginal regression model is applied to the monthly series of unconditional correlations. We find that the growth in foreign investors' transaction share of the Tokyo market's turnover approximately accounts for the rise in U.S.-Japan correlations for 1990–2019. Foreign investors' trades improve the informational efficiency of local national markets. Increased correlations lead to smaller potential gains from international diversification, however. [ABSTRACT FROM AUTHOR]

Our research investigates how the inclusion of a company on an independent ethics index affects its attractiveness to institutional investors. Using a sample of 864 U.S. firms over the 2010–2018 period, we find that institutional investors significantly increase their holdings in companies in the quarter that they are included on the ethics index and maintain larger holdings in the four quarters following the inclusion on the Ethisphere list relative to pre‐inclusion period, with dedicated institutional investors being more swayed to invest than transient investors. This paper adds to the emerging literature on intermediate signaling by showing that a firm's inclusion on an ethics index reduces information asymmetry with institutional investors. Our evidence suggests that public companies should effectively, rather than ceremonially, adopt sound governance structures and invest in socially responsible activities, as these actions can increase their likelihood of being included on ethics indices. By doing so, these firms send credible signals about their ethical compass, granting them access to valuable institutional investments. [ABSTRACT FROM AUTHOR]

Thinking outside the benchmark requires institutional investors to break away from the traditional asset class lines that apply to most portfolio construction processes. Most versions of strategic asset allocation focus on just that—on asset classes. This builds into the complementary concept of a total portfolio approach (TPA) that advocates that institutional investors step away from traditional asset class buckets and consider economic factors that drive the risk and return profile for a pool of capital. Every investment is broken down into its main economic drivers and then added to the total portfolio to assess its overall risk and return profile. Asset class lines become descriptions, but not restrictions, on how the portfolio is constructed. An example of TPA is the investment focus on environmental, social and governance (ESG) investments. ESG is more a theme and less an asset class, and it has the potential to allow investors to think outside of benchmarks and away from traditional asset class descriptions. [ABSTRACT FROM AUTHOR]

The EU taxonomy, introduced in 2022, is a comprehensive classification system categorizing environmentally sustainable economic activities. This study examines the impact of incorporating EU taxonomy data into corporate environmental disclosure on investor judgments. Through five experimental cases involving standard environmental disclosure and additional moderate/positive/negative taxonomy‐aligned information, we assessed institutional and retail investor evaluations. Results reveal that taxonomy inclusion significantly influences investor judgments, particularly among institutional investors who are more adept at recognizing and penalizing negative information. Clear taxonomy‐aligned data in combination with standard environmental information shows no steering effect among retail investors. Despite underperforming taxonomy indicators, environmental information generally conveys positive signals to retail investors. [ABSTRACT FROM AUTHOR]

This paper attempts to evaluate the valuation effect of deregulation policy on capital outflows by an event study approach. Using the policy announcement of Qualified Domestic Institutional Investor (QDII) and Bond Connect in China, we find a short-term valuation effect that the stock market responds negatively to the deregulation on capital outflows and firm's size could act as a shield to defend this shock. Moreover, the financially constrained firms are more negatively affected by this policy shock, suggesting that financial vulnerability is an important force driving down the stock valuation. Finally, both the quality of corporate governance and bureaucratic quality of local government could help firms to avoid valuation loss from this policy shock especially those with tight financial constraints. [ABSTRACT FROM AUTHOR]

Domestic and Foreign institutional investors are professional investors who aim to profit from price movements in the stock market. These investors not only profit from their investments but also drive the stock market of any country. The study examines the association between Sensex Nifty 50’s movements and investing patterns of FIIs, DIIS and the causal relationship between stock market returns and institutional investments (FIIS and DIIs). The study also analyses the impact of FIIs and DIIs in driving the Indian stock market. The study employed correlation analysis, vector autoregression model, Block exogeneity Wald-test and the Granger causality test for the objectives. Our results indicate the gradual fall in the FIIs-DIIs ratio in the Indian stock market, making domestic institutional investors a prominent counterforce to FIIs and establishing it as an equal driver. DIIs act as positive feedback traders, while FIIs act as neutral to negative traders. The causality test demonstrates that market return has a significant impact on both the players, but neither FIIs nor DIIs have a significant impact on market movement [ABSTRACT FROM AUTHOR]

Infrastructure is the backbone of economies and societies, and it is not only governments that invest in digital, energy, transport, and utilities companies. Increasingly, institutional investors have increased their allocations to infrastructure as an asset class. In this article, the authors empirically evaluate four main motives to include infrastructure in the investment mix. Their results show that portfolio diversification, downside risk protection, and stable income yields are all valid reasons for investing in infrastructure. However, the evidence on infrastructure's inflation-hedging capabilities is less compelling, despite its significant role in asset-liability management frameworks. This article offers valuable empirical insights into infrastructure as an investable asset class that has important applications for portfolio construction. [ABSTRACT FROM AUTHOR]

Understanding institutional investors' investment criteria in emerging markets is essential because they typically make large investments without control rights or protection of the rule of law. This study undertakes an investment criteria investigation of institutional investors in Turkiye. The sample covers real and financial sector companies to investigate sectoral differences in Borsa Istanbul‐listed firms for 2010–2021. Using a panel data approach, we show that the presence of growth options, generous payout policy, attractive firm valuation, and quality of the external governance mechanisms are important factors in attracting institutional investors by real sector firms. Only a large firm size and the quality of the external governance mechanisms arise as important factors for financial sector firms. Moreover, institutional holdings positively impact the percentage shares of institutional investors during crisis periods among real sector firms, whereas they do not affect financial sector firms. Real‐sector and financial‐sector firms can use our findings to increase institutional ownership. Our results have important implications for institutional investors, individual investors, and market regulators to demand critical corporate governance practices. [ABSTRACT FROM AUTHOR]

We address the scarcity of empirical research on Shariah Compliance Disclosure (hereafter referred to as SCD) by presenting new evidence on the levels and range of SCD, of 807 bank‐year observation of Islamic Financial Institutions (hereafter referred to as IFIs) in 19 countries for the period from 2010 to 2020 and its determinants. Using an unweighted disclosure index measured by manual content analysis categorized into Shariah Supervisory Board (hereafter referred to as SSB) information, audit process, Shariah compliance review and Zakat, several outcomes are documented. In general, the SCD level is above average (57.38%) and hence evidence an overall growth during the sample period. Further, the study examines the relationship between corporate governance (CG) and SCD and the results indicate that foreign investors, institutional investors, board size, board independence, SSB reputation and SSB size are vital and influence the extent of SCD level. The study also conducted several tests to examine the main findings' robustness. The findings deliver valuable in‐depth empirical insights to regulatory bodies on the current SCD practises of IFIs to assist policymakers in modifying reporting frameworks or guidelines accordingly. In addition, this research can support academics, policymakers or standard setters and managers interested in seeking information about SCD and CG. [ABSTRACT FROM AUTHOR]

This study assesses the effects of CEO power on green innovation and, more importantly, explores how different performance feedback affects this relationship by considering the positive and negative aspects of financial and environmental performance feedback. We further discuss how institutional investors respond to the decision‐making of powerful CEOs on green innovation. By using Chinese manufacturing observations, we find that although powerful CEOs positively promote firms' green innovation, this positive effect does not apply to all conditions. The impacts of CEO power on green innovation are different under the positive and negative aspects of performance feedback, and under financial and environmental performance feedback. Accordingly, heterogeneous institutional investors respond differently to these various situations. Specifically, pressure‐resistant institutional investors serve as 'supervisors' under the positive aspects of financial and environmental performance feedback and shift to 'bystanders' under the negative aspects of financial and environmental performance feedback. Pressure‐sensitive institutional investors always act as 'bystanders' under different performance feedback. [ABSTRACT FROM AUTHOR]

We investigate the increasingly common practice of chief executive officers (CEOs) taking public stances on social and political issues (CEO activism). We find that CEO activism stems from a CEO's personal ideology and its alignment with investor, employee, and customer ideologies. We show that CEO activism results in positive market reactions. Furthermore, firms with CEO activism realize increased shareholdings from investors with a greater liberal leaning, who rebalance their portfolios toward these firms. Our results suggest that investors' socio-political preferences are an important channel through which CEO activism affects equity demand and stock prices. Notably, CEOs are less likely to be fired when their activist stances generate positive market responses. This paper was accepted by Victoria Ivashina, finance. Supplemental Material: The data files are available at https://doi.org/10.1287/mnsc.2023.4971. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper is to understand how those involved in executive pay determination in large publicly quoted UK businesses see the role of diversity within remuneration committees (Remcos) as enabling the input of different perspectives, which can enhance their decision-making and potentially improve pay outcomes. Design/methodology/approach: Qualitative, semi-structured interviews were undertaken with 18 high-profile major-enterprise decision-makers and their advisers, i.e. non-executive directors (NEDs) serving Remcos, institutional investors, executive pay consultants and internal human resources (HR) reward specialists, together with data from three focus groups with 10 further reward management practitioners. Findings: Remco members recognise the benefits of social category/demographic diversity but say the likelihood of increasing this is low, given talent pipeline issues. The widening of value diversity is considered problematic for Remcos' functioning. Informational diversity is used as a proxy for social category/demographic diversity to improve Remcos' decision-making on executive pay. While the inclusion of members from wider social networks is recognised as potentially bringing a different informational perspective, the social character of Remcos, reflecting their elite nature and experience of wealth, appears ingrained. Originality/value: Our original contribution is to extend the application of upper echelons theory in the context of Remco decision-making to explain why members do not welcome widening informational diversity by appointing people from different social networks who lack value similarity. Instead, by drawing views from employees, HR acts as a proxy for social network informational diversity. The elite, upper-echelons nature of Remco appointments remains unchanged and team functioning is not disrupted. [ABSTRACT FROM AUTHOR]

Purpose: Farmland is an important property sector that has attracted the attention of institutional investors globally in recent years. This paper examines the risk-adjusted performance and portfolio diversification benefits of Australian farmland in a portfolio over the eight-year period of Q2:2015–Q2:2023, highlighting the unique property management dimensions to this property sector for its effective role in an institutional investor's property portfolio. Design/methodology/approach: Using the quarterly ANREV Australian farmland index over Q2:2015–Q2:2023, the risk-adjusted performance and portfolio diversification potential of Australian farmland is assessed. Constrained mixed-asset portfolios are used to assess the potential added-value role of Australian farmland in a mixed-asset portfolio. Analyses are also done for the farmland sub-sectors of annual farmland and permanent farmland. Findings: Australian farmland is seen to show strong risk-adjusted performance but at a much higher risk level than that seen for direct property. Diversification benefits from Australian farmland are also evident, with an important role by Australian farmland seen in the mixed-asset portfolio. Specific farmland property management strategies are identified for the effective inclusion of farmland in an institutional investor's property portfolio, including the potential benefits towards net zero carbon strategies. Originality/value: This is the first research that provides an independent empirical examination of the strategic importance of Australian farmland property for institutional investors using the institutional investment-grade ANREV Australian farmland database, from both an investment and environmental perspective. The unique property management implications for Australian farmland property are also highlighted, including the potential role of Australian farmland in net zero carbon strategies by institutional investors. [ABSTRACT FROM AUTHOR]

This paper investigates the impact of online interaction between investors and enterprises on stock liquidity, using data from A-share listed companies in China from 2010 to 2021. Firstly, our findings reveal that more frequent interaction leads to better stock liquidity, and this result remains consistent across various robustness tests. Secondly, we observe that the expected tenure of senior executives and the ratio of institutional investor ownership exert a significant moderating effect on this relationship. Thirdly, this effect varies across enterprises at different development stages and with different ownership structures, being more pronounced in growing and privately-owned companies. Furthermore, this paper finds an inverted U-shaped relationship between reply length and stock liquidity, indicating that excessively long replies may introduce noise and negatively affect liquidity. This study provides new insights into how online interactions can improve market efficiency and offers practical implications for corporate governance and investor relations. [ABSTRACT FROM AUTHOR]

The article offers a complete overview of the normative framework provided by Italian law and self-regulation regarding the stewardship of asset managers and asset owners. In particular, it focuses on the relationship between hard law and soft law by outlining overlaps and divergences under five different perspectives: the scope of application, the integration of ESG factors, the extension to debtholder stewardship, the type of collaborative engagement promoted, and the problem of enforcement. Building on extant authoritative scholarship, the paper argues that in order to achieve a dynamic synergy between the two layers of the regulatory framework and avoid useless overlaps, Italian soft law should highlight the specificities of the national corporate governance landscape by nudging institutional investors (including foreign ones) into a set of behaviours that is country-specific, offer guidelines to integrate ESG factors, stimulate stewardship for debtholders, further develop platforms for collaborative engagement, and advance a complementary enforcement strategy to the one provided by hard law. [ABSTRACT FROM AUTHOR]

Since the capitalist and colonial enclosure of land-qua-property, the property parcel has served as the geographic foundation of land ownership. Bounded, self-contained, and mutually exclusive with all surrounding parcels, this geography is taken for granted in our contemporary understandings of property. As the ownership of land, property, and housing has become increasingly concentrated in fewer and fewer hands in recent years, however, it perhaps makes more sense to think of property not as isolated and individual, but as fundamentally networked and relational. Properties that are quite distant from one another are often connected through tangled webs of corporate property ownership, which are meant to deliberately obscure the true ownership—and concentration—of such property from public view. This article demonstrates the importance of untangling these corporate networks, using a case study of three large corporate landlords operating in metropolitan Atlanta, Georgia: Invitation Homes, Pretium Partners, and Amherst Holdings. The article shows how the true extent of these corporate landlords' holdings is hidden by these networks, and how researchers can untangle that to produce a more complete understanding of concentrated housing ownership. Through this method, we can uncover that these three firms control more than 19,000 single-family homes across the five core counties of Metro Atlanta, using an extensive network of more than 190 corporate aliases—registered to seventy-four different addresses across ten states and one territory—to hide their holdings behind a veil of secrecy and insulate themselves from liability. [ABSTRACT FROM AUTHOR]

Using a matched sample of foreign and domestic IPO firm listings on US stock exchanges, we find that foreign IPO firms are associated with significantly higher upward earnings management via discretionary (abnormal) long‐term accruals in the first 2 years post‐IPO year, and lower long‐run stock returns in the 3 years post‐listing, compared to US domestic IPO firms. Our results also show that the lower long‐run stock returns of foreign IPO firms are associated with their higher discretionary long‐term accruals. We provide further evidence that institutional investors can mitigate lower long‐run stock returns of foreign IPO firms compared with US domestic IPO firms. [ABSTRACT FROM AUTHOR]