AbstractThe study examines the association between institutional shareholdings in FTSE ALL Share firms and corporate governance from 2006 to 2010. Institutions are believed to invest in firms with better corporate governance, to help meet their fudiary duties. The evidence is consistent with this view, that institutional investors do tilt their portfolios’ to firms with better governance. However, when examining ownership at various levels only block-ownership at ≤10% had a positive significant association to corporate governance. It was also found that institutional shareholder became more sensitive after the 2007-8 financial crisis. Finally, when exploring the association for different types of institution, it was found that investment advisors and hedge funds were the most sensitive to corporate governance.
The study provides a contribution to knowledge on institutional ownership, as it provides the first evidence on the institutional investor preferences on corporate governance within the UK and which elements are the most important to institutions.
|Date of Award||Mar 2018|
|Supervisor||Tony Hines (Supervisor) & Paraskevas Pagas (Supervisor)|