TY - JOUR
T1 - Institutional investor horizon and bank risk-taking
AU - Pathan, Shams
AU - Haq, Mamiza
AU - Faff, Robert
AU - Seymor, Trent
PY - 2021/2/1
Y1 - 2021/2/1
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.
KW - Bank risk-taking
KW - Institutional shareholdings
KW - financial crisis
KW - Financial performance
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
VL - 66
JO - Journal of Corporate Finance
JF - Journal of Corporate Finance
SN - 0929-1199
M1 - 101794
ER -