TY - JOUR
T1 - Institutional investor horizon and bank risk-taking
AU - Pathan, Shams
AU - Haq, Mamiza
AU - Faff, Robert
AU - Seymour, Trent
N1 - Funding Information:
Shams Pathan gratefully acknowledges the generous research support received from the Australian Research Council Discovery Early Career Research Award, ARC DECRA # DE140100253, Australia.
Publisher Copyright:
© 2020 Elsevier B.V.
Copyright:
Copyright 2020 Elsevier B.V., All rights reserved.
PY - 2021/2
Y1 - 2021/2
N2 - We test the effect of short-term versus long-term institutional shareholding –so-called investor horizon– on bank risk-taking. We find that in contrast to banks dominated by short-term shareholders, banks with greater long-term shareholding are associated with lower risk, better stock performance, and conservative business and compensation policies. Our results imply that bank regulators should be more vigilant over the actions of banks that heavily rely on short-term shareholding.
AB - We test the effect of short-term versus long-term institutional shareholding –so-called investor horizon– on bank risk-taking. We find that in contrast to banks dominated by short-term shareholders, banks with greater long-term shareholding are associated with lower risk, better stock performance, and conservative business and compensation policies. Our results imply that bank regulators should be more vigilant over the actions of banks that heavily rely on short-term shareholding.
UR - http://www.scopus.com/inward/record.url?scp=85097480837&partnerID=8YFLogxK
U2 - 10.1016/j.jcorpfin.2020.101794
DO - 10.1016/j.jcorpfin.2020.101794
M3 - Article
AN - SCOPUS:85097480837
SN - 0929-1199
VL - 66
JO - Journal of Corporate Finance
JF - Journal of Corporate Finance
M1 - 101794
ER -