Do institutional investors exacerbate managerial myopia?

Journal of Corporate Finance

Volumn 6, Issue 3, 2000, Pages 307-329

  Wahal, Sunil ^a   McConnell, John J ^b  

^a EMORY UNIVERSITY   (United States)

^b PURDUE UNIVERSITY   (United States)

Author keywords

Endogeneity; Institutional investors; Managerial myopia

Indexed keywords

EID: 0001348072     PISSN: 09291199     EISSN: None     Source Type: Journal    
DOI: 10.1016/s0929-1199(00)00005-5     Document Type: Article

References (41)

1. Anderson R.C., Lee S. Ownership studies: the data source matters. Journal of Financial and Quantitative Analysis. 32:1997;311-329.
2. Barber, B., Odean, T., 1998. The Common Stock Investment Performance of Individual Investors. Working Paper, University of California at Davis.
3. Baysinger B., Kosnik R., Turk T. Effects of board and ownership structure on corporate strategy. Academy of Management Journal. 34:1991;205-214.
4. Bebchuk L.A., Stole L.A. Do short-term objectives lead to under- and overinvestment in long-term projects? Journal of Finance. 48:1993;719-729.
5. Bethel J., Liebeskind J., Opler T. Block share purchases and corporate performance. Journal of Finance. 53:1998;605-634.
6. Blinder A. More like them? American Prospect. 3:1992;51-62.
7. Bushee B. The influence of institutional investors on myopic R&D investment behavior. Accounting Review. 73:1998;305-333.
8. Cho M. Ownership structure, investment, and the corporate value: an empirical analysis. Journal of Financial Economics. 47:1998;103-121.
9. Dobrzynski J. More than ever, it's management for the short-term. Business Week. 1986;92-93.
10. Frey D.N. The U.S. needs patient investors. Fortune. 114:1986;125-126.
11. Friedman B.M. Economic implications of changing share ownership. Journal of Portfolio Management. 22:1996;59-70.
12. Froot K.A., Perold A., Stein J. Shareholder trading practices and corporate investment horizons. Journal of Applied Corporate Finance. 5:1996;42-58.
13. Graves S. Institutional ownership and corporate R&D in the computer industry. Academy of Management Journal. 31:1988;417-428.
14. Hall, B.J., Weinstein, D.E., 1996. The Myth of the Patient Japanese: Corporate Myopia and Financial Distress in Japan and the U.S. Working paper, Harvard University.
15. Hansen G., Hill C. Are institutional investors myopic? A time-series study of four technology driven industries. Strategic Management Journal. 12:1991;1-16.
16. Hausman J. Specification tests in econometrics. Econometric. 46:1978;1251-1271.
17. Himmelberg C., Hubbard R., Palia D. Understanding the determinants of managerial ownership and the link between ownership and performance. Journal of Financial Economics. 53:1999;353-384.
18. Jacobs M.T. Short Term America: The Causes and Cures of our Business Myopia. 1991;Harvard Univ. Press, Cambridge.
19. Jarrell, G., Lehn, K., Marr, W., 1985. Institutional Ownership, Tender Offers and Long-Term Investments, Unpublished SEC study.
20. Jensen M.C. The takeover controversy: analysis and evidence. Midland Corporate Finance Journal. 4:1986;6-32.
21. Jensen M.C. Agency costs of free cash flow, corporate finance, and takeovers. American Economic Review. 76:1986;323-329.
22. Kochhar R., David P. Institutional investors and firm innovation: a test of competing hypotheses. Strategic Management Journal. 17:1996;73-84.
23. Lee, P.M., 1997. A Comparison of Ownership Structures, R&D Investment, and Innovations of U.S. and Japanese Firms. Working Paper, Emory University.
24. Lemke T.P., Lins G.T. Disclosure of equity holdings by institutional investment managers: an analysis of Section 13(F) of The Securities Exchange Act of 1934. The Business Lawyer. 43:1987;93-119.
25. McConnell J.J., Servaes H. Additional evidence on equity ownership and corporate value. Journal of Financial Economics. 27:1990;595-613.
26. McConnell J.J., Servaes H. Equity ownership and the two faces of debt. Journal of Financial Economics. 39:1995;131-157.
27. Monks R.A.G. Corporate 'Catch-22'. Wall Street Journal. 1988;. (January 5).
28. Morck R., Shleifer A., Vishny R.W. Management ownership and market valuation: an empirical analysis. Journal of Financial Economics. 20:1988;293-315.
29. Myers S.C. Determinants of corporate borrowing. Journal of Financial Economics. 5:1977;147-175.
30. Narayanan M.P. Managerial incentives for short-term results. Journal of Finance. 40:1985;1469-1484.
31. Narayanan M.P. Form of compensation and managerial decision horizon. Journal of Financial and Quantitative Analysis. 31:1996;467-491.
32. Porter M.E. Capital disadvantage: America's failing capital investment system. Harvard Business Review. 70:1992;65-82.
33. Rajan R., Zingales L. Which capitalism? Lessons from the East Asian crisis. Journal of Applied Corporate Finance. 11:1998;40-49. (Fall).
34. Shleifer A., Vishny R.W. Equilibrium short-horizons of investors and firms. AEA Papers and Proceedings. 80:1990;148-153.
35. Smale J.G. What about shareowner's responsibility? Wall Street Journal. 1987;. (October 16).
36. Stein J. Takeover threats and managerial myopia. Journal of Political Economy. 96:1988;61-80. (February).
37. Stein J. Efficient capital markets, inefficient firms: a model of myopic corporate behavior. Quarterly Journal of Economics. 104:1989;655-669.
38. Stulz R. Managerial discretion and optimal financing policies. Journal of Financial Economics. 26:1990;3-27.
39. Thakor A. Investment myopia and the internal organization of capital allocation decisions. Journal of Law, Economics and Organization. 6:1990;129-154.
40. Thurow L. Head to Head: The Coming Economics Battle Among Japan, Europe and America. 1993;Warner Books.
41. Wright P., Ferris S., Sarin A., Awasthi V. Impact of corporate insider, blockholder and institutional equity ownership on firm risk-taking. Academy of Management Journal. 39:1996;441-463.