HCBE Faculty Articles
Title
Investment Horizons and Information
Document Type
Article
Publication Date
2016
Publication Title
Journal of Business Finance & Accounting
ISSN or ISBN
1468-5957
Volume
43
Issue/Number
7-8
First Page
1017
Last Page
1056
Abstract/Excerpt
We examine the relation between institutions' investment horizons on firms' financing and investment decisions. Firms with larger short‐term institutional ownership use less debt financing and invest more in corporate liquidity. In contrast, firms with larger long‐term institutional ownership use more internal funds, less external equity financing, and preserve investments in long‐term assets. These results are primarily driven by the variation in informational preferences of different institutions. We argue that short‐term (long‐term) institutions collect and use value‐neutral (value‐enhancing) information.
DOI
https://doi.org/10.1111/jbfa.12205
NSUWorks Citation
Huang, Kershen and Petkevich, Alex, "Investment Horizons and Information" (2016). HCBE Faculty Articles. 1028.
https://nsuworks.nova.edu/hcbe_facarticles/1028
