Document Type
Article
Publication Date
2-2019
Abstract
This study examines the impact of institutional investors' equity ownership stability and their investment horizon to determine the impact on their investee firms' equity mispricing. We treat institutional investors as a heterogenous group, i.e., dedicated, transient, or quasi-indexer as defined by Bushee (1998, 2001) since their categorization determines their trading strategy. Higher institutional ownership, higher stability in institutional investors' equity ownership, and institutional investors classified as long-term are all associated with lower equity mispricing at investee firms.
Recommended Citation
Sakaki, Hamid; Jory, Surendranath; and Jackson, Dave, "Institutional Investors’ Ownership Stability and Their Investee Firms’ Equity Mispricing" (2019). Economics and Finance Faculty Publications and Presentations. 69.
https://scholarworks.utrgv.edu/ef_fac/69
DOI
10.2139/ssrn.3138728