The Impact of Institutional Investors, Investment Horizons on ManagementEfficiency and Investment Decisions of the Companies
AbstractInstitutional investors play a crucial role in monitoring and reducing asymmetric information. Institutional investors reduce asymmetric information by demanding high quality in corporate governance practices and information disclosure that leads to informed decisions on investment choices....
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| Format: | Article |
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Alzahra University
2023-03-01
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| Series: | راهبرد مدیریت مالی |
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| Online Access: | https://jfm.alzahra.ac.ir/article_6289_4973dce8df799828f4e9e7b5142d6f14.pdf |
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| author | Ali Badieenezhad Afsaneh Tavangar hamzeh kallaee Ali Esmaeilzadehmaghari Negar Khosravipour |
| author_facet | Ali Badieenezhad Afsaneh Tavangar hamzeh kallaee Ali Esmaeilzadehmaghari Negar Khosravipour |
| author_sort | Ali Badieenezhad |
| collection | DOAJ |
| description | AbstractInstitutional investors play a crucial role in monitoring and reducing asymmetric information. Institutional investors reduce asymmetric information by demanding high quality in corporate governance practices and information disclosure that leads to informed decisions on investment choices. In the present study, the impact of institutional investors, investment horizons on management efficiency and investment decisions of the companies is investigated. In thes study, the data of 138 companies listed in tehrak stock Exchange during 2018-2011 were investigated. In order to test the hypothesis, Regression models with panel data method and fixed effects approach areused. The results of the testing of research hypotheses indicated that the short-term investment horizon of institutional investors has a negative and significant impact on management efficiency. also, The research findings indicated that the long–term investment horizon of institutional investors has a negative impact on the investment decisions and expenditures of companies with high operating cash flows, by the method based on Bushee(1998)and these investors(with lng-term investment horizon) reduce theinvestment decisions and expenditures of companies with limited funding. This finding could be due to the fact that the majority of institutional investors withlong–term investment horizon in companies with limited fundinghave absolute control and exacerbate the company's problems in order to extract private benefits. |
| first_indexed | 2024-04-10T04:13:25Z |
| format | Article |
| id | doaj.art-0b381454dffb45118624c3d2607ebb77 |
| institution | Directory Open Access Journal |
| issn | 2345-3214 2538-1962 |
| language | fas |
| last_indexed | 2024-04-10T04:13:25Z |
| publishDate | 2023-03-01 |
| publisher | Alzahra University |
| record_format | Article |
| series | راهبرد مدیریت مالی |
| spelling | doaj.art-0b381454dffb45118624c3d2607ebb772023-03-12T10:16:36ZfasAlzahra Universityراهبرد مدیریت مالی2345-32142538-19622023-03-0111118521010.22051/jfm.2020.30324.23266289The Impact of Institutional Investors, Investment Horizons on ManagementEfficiency and Investment Decisions of the CompaniesAli Badieenezhad0Afsaneh Tavangar hamzeh kallaee1Ali Esmaeilzadehmaghari2Negar Khosravipour3Department of Accounting, Centeral tehran Branch, Islamic Azad University, tehran, IranDepartment of Accounting, Central tehran Branch, Tehran, IranDepartment of Accounting, Central tehran Branch, Islamic Azad University, Tehran, IranDepartment of Accounting, Central tehran Branch, Islamic Azad Univercity,Islamic Azad University,Tehran,IranAbstractInstitutional investors play a crucial role in monitoring and reducing asymmetric information. Institutional investors reduce asymmetric information by demanding high quality in corporate governance practices and information disclosure that leads to informed decisions on investment choices. In the present study, the impact of institutional investors, investment horizons on management efficiency and investment decisions of the companies is investigated. In thes study, the data of 138 companies listed in tehrak stock Exchange during 2018-2011 were investigated. In order to test the hypothesis, Regression models with panel data method and fixed effects approach areused. The results of the testing of research hypotheses indicated that the short-term investment horizon of institutional investors has a negative and significant impact on management efficiency. also, The research findings indicated that the long–term investment horizon of institutional investors has a negative impact on the investment decisions and expenditures of companies with high operating cash flows, by the method based on Bushee(1998)and these investors(with lng-term investment horizon) reduce theinvestment decisions and expenditures of companies with limited funding. This finding could be due to the fact that the majority of institutional investors withlong–term investment horizon in companies with limited fundinghave absolute control and exacerbate the company's problems in order to extract private benefits.https://jfm.alzahra.ac.ir/article_6289_4973dce8df799828f4e9e7b5142d6f14.pdflong-term investment horizons for institutional investorsshort-term investment horizons for institutional investorsmanagement efficiency and investment expendichers |
| spellingShingle | Ali Badieenezhad Afsaneh Tavangar hamzeh kallaee Ali Esmaeilzadehmaghari Negar Khosravipour The Impact of Institutional Investors, Investment Horizons on ManagementEfficiency and Investment Decisions of the Companies راهبرد مدیریت مالی long-term investment horizons for institutional investors short-term investment horizons for institutional investors management efficiency and investment expendichers |
| title | The Impact of Institutional Investors, Investment Horizons on ManagementEfficiency and Investment Decisions of the Companies |
| title_full | The Impact of Institutional Investors, Investment Horizons on ManagementEfficiency and Investment Decisions of the Companies |
| title_fullStr | The Impact of Institutional Investors, Investment Horizons on ManagementEfficiency and Investment Decisions of the Companies |
| title_full_unstemmed | The Impact of Institutional Investors, Investment Horizons on ManagementEfficiency and Investment Decisions of the Companies |
| title_short | The Impact of Institutional Investors, Investment Horizons on ManagementEfficiency and Investment Decisions of the Companies |
| title_sort | impact of institutional investors investment horizons on managementefficiency and investment decisions of the companies |
| topic | long-term investment horizons for institutional investors short-term investment horizons for institutional investors management efficiency and investment expendichers |
| url | https://jfm.alzahra.ac.ir/article_6289_4973dce8df799828f4e9e7b5142d6f14.pdf |
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