Please use this identifier to cite or link to this item: https://hdl.handle.net/20.500.14279/22876
Title: Institutional Ownership and Firms’ Thrust to Compete
Authors: Andreou, Panayiotis 
Fiordelisi, Franco 
Harris, Terry 
Philip, Dennis 
Major Field of Science: Social Sciences
Field Category: Economics and Business
Keywords: Shareholder activism;Institutional investors;Blockholders
Issue Date: 2021
Source: British Journal of Management, 2021
Journal: British Journal of Management 
Abstract: This paper provides evidence on the impact of transient (short-term) institutional investors on a firm's thrust to compete. A firm's thrust to compete, as an attribute of corporate culture, captures the relative importance of corporate values that push a firm to achieve shareholder value in the short term by emphasizing goal achievement, fast response to external information and enhanced competitiveness. We find that greater ownership by transient investors results in firms intensifying their future thrust to compete, suggesting that firms respond to these investors’ preferences and competitive pressures for achieving short-term value creation. In line with our expectations, this effect is not observed for firms with greater ownership by long-horizon institutional investors, who are incentivized to place their emphasis on long-term firm value over short-term gains. Our findings reveal that the composition of institutional ownership influences the organizational culture of firms in a non-homogeneous way. As such, we provide significant empirical insights for the ongoing debate on the implications arising from the behind-the-scenes engagement of institutional investors with management.
URI: https://hdl.handle.net/20.500.14279/22876
ISSN: 14678551
DOI: 10.1111/1467-8551.12496
Rights: This is an open access article under the terms of the Creative Commons Attribution-NonCommercial License.
Attribution-NonCommercial-NoDerivatives 4.0 International
Type: Article
Affiliation : Cyprus University of Technology 
University of Essex 
University of Rome III 
Durham University 
Appears in Collections:Άρθρα/Articles

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