Investment Horizons and Information

Event Location / Date(s)

26th Annual NFA Conference/Ottawa, Canada

Event Name / Location

Northern Finance Association Annual Conference

Presentation Date

2014

Document Type

Conference Proceeding

Presenter(s) / Author(s)

Kershen Huang, Nova Southeastern UniversityFollow
Alex Petkevich, University of Toledo

ORCID ID

Kershen Huang0000-0002-7141-3668

Description

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 driven significantly by information, in addition to the long-term demand shock of institutional ownership. We argue that short-term (long-term) institutions collect and use value-neutral (value-enhancing) information.

First Page

22

Last Page

22

Comments

Citation details to be verified.

NSUWorks Citation

Huang, Kershen and Petkevich, Alex, "Investment Horizons and Information" (2014). HCBE Faculty Presentations. 1361.
https://nsuworks.nova.edu/hcbe_facpres/1361