Date of Award
Doctor of Philosophy (PhD)
Dr. Dave Jackson
Dr. Diego Escobari
Dr. Andre V. Mollick
First essay has two primary objectives. First, I investigate the relation between institutional investors and firms’ innovation activities and second, the impact of different types of institutional investors on firms’ innovation by classifying institutional investors into five groups. After controlling for other determinants of innovation, the results show that higher institutional ownership stability boosts innovation activities measured by the number of patents and citations. The results also indicate that banks, insurance, and investment companies have a positive and significant effect on firms’ innovation, while investment advisors could affect innovation activities negatively. Moreover, when I classify the institutional investors based on the degree of their activism level, the results reveal that more active institutional investors tend exacerbate the firms’ innovation, while most passive institutional investors don’t have any statistically significant effect on patent activities.
Second essay examines the impact of intuitional investors on equity mispricing by considering their stability, proportion and investment horizon. I find that intuitional ownership stability and proportion can mitigate equity mispricing. Furthermore, by classifying institutional investors to short-term and long-term based on their investment horizon, the results show that long-term institutional investors reduce equity mispricing. In contrast, short-term institutional investors promote equity mispricing.
Sakaki, Hamid, "Equity Mispricing, Firms' Innovation and Institutional Investors" (2017). Theses and Dissertations. 387.