Institutional presence

• Main Authors: SULAEMAN, Johan, WEI, Chi Shen
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2013
• Subjects: institutional investors; non-shareholders; liquidity; cost of capital; Finance and Financial Management; Portfolio and Security Analysis
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/6778; https://ink.library.smu.edu.sg/context/lkcsb_research/article/7777/viewcontent/SSRN_id2373506.pdf
• Institution: Singapore Management University

We propose an Institutional Presence (IP) measure to capture the latent role of non-owner institutional investors who nevertheless may be observing a firm. We employ this measure to examine whether the ‘presence’ of institutional investors reduces information asymmetry in the market. Firms in areas...