Since the 1960s, rapid development of institutional investors is a prominent feature of global financial market. In china, full circulation of stock will realize after the completion of Split Share Structure Reform. Under the circumstance of institutional investors holding a large scale of stock, will they change their invest style? Whether they place more emphasis on value investment and conce...

A. Proof of Theorem 1 Proof. We solve the model here allowing for heteroskedastic dividends σ2 i . Theorem 1 can then be proved as the special case σ 2 = σ 2 i . We assume that assets are ranked in ascending order of β/σ2. We first posit an equilibrium structure. We then check ex-post that it is indeed an equilibrium and that it is a unique equilibrium. Let ī ∈ [2, N ] and let μi be the share h...

Investors often influence the strategic decisions of their holdings, such as long-term orientation and investments in intangible assets. Investigating IT capability as a strategic asset, we examine the influence of institutional shareholders’ investment horizon and blockholdings on the development of organizational IT capability. We perform a panel data analysis of eleven years of archival data...

The covariance between nominal bonds and stocks has varied considerably over recent decades and has even switched sign. It has been predominantly positive in periods such as the late 1970’s and early 1980’s when the economy has experienced supply shocks and the central bank has lacked credibility. It has been predominantly negative in periods such as the 2000’s when investors have feared weak a...

R research has shown that managers in publicly traded companies facing earnings pressure—the pressure to meet or beat securities analysts’ earnings forecasts—may make business decisions to improve short-term earnings. Analysts’ forward-looking performance forecasts can serve as powerful motivation for managers, but may also encourage them to undertake short-term actions detrimental to future co...

The old adage about putting all of one’s eggs in one basket was thought wise long before the advent of modern portfolio theory and the important results of Markowitz (1959) and others. However, despite the anecdotal imperative to investors to diversify their portfolios, the empirical reality is that diversification rarely takes place as recommended by portfolio theory. In this paper, I demonstr...

Grossman (1976) shows how market prices aggregate private information. In this paper I show how trading volume helps investors to interpret the aggregate information in the price. I construct a model where investors trade for two reasons: private information and risk sharing. When trading volume is high, investors know that private signals are dispersed. They therefore weight the market price h...