"Transient institutional ownership, costly external finance and corporate cash holdings
Citations

WEB OF SCIENCE

2
Citations

SCOPUS

3

초록

"We investigate and robustly show that transient institutional ownership (IO) has a positive effect on the level and value of corporate cash holdings. Further, using a regression discontinuity design exploiting the Russell 1000/2000 index reconstitution as an exogenous shock to transient IO, we show that the effects of transient IO on cash holdings are causal. Additionally, our analysis shows that transient institutions exacerbate debtholder–shareholder conflicts, thereby increasing the cost of debt. Overall, our results suggest that transient institutions make cash holdings more valuable because financing by debt becomes more costly. © 2024 John Wiley & Sons Ltd.

키워드

cash holdingscostly external financedebtholder–shareholder conflictsstock price crash risktransient institutional ownershipHEDGE FUND ACTIVISMAGENCY COSTSINVESTMENTINVESTORSCONSTRAINTSGOVERNANCELIQUIDITYFIRMSRISKFLOW
제목
"Transient institutional ownership, costly external finance and corporate cash holdings
저자
"Im, Hyun JoongPark, HeungjuPathan, ShamsFaff, Robert
DOI
10.1111/jbfa.12840
발행일
2025-04
유형
Article; Early Access
저널명
Journal of Business Finance and Accounting
52
2
페이지
1212 ~ 1249