Abstracts
Abstract
This paper investigates the relationship between institutional blockholdings and corporate investment efficiency. Using a sample of 283 French-listed firms during 2002-2016, we find that institutional blockholders improve investment efficiency and decrease the magnitude of over-investment. This finding withstands a battery of sensitivity checks and remains unchanged after accounting for endogeneity concerns. Moreover, we provide evidence that investment inefficiency decrease in the presence of institutional investors with longer-term investment horizons due to improved monitoring and information quality. Third, we find that both foreign and domestic institutional blockholders play a significant role in shaping firms' efficient investment behavior. Finally, cross-sectional tests indicate that institutional monitoring mitigates investment distortions to a greater extent for firms facing higher agency problems and greater information asymmetry.
Keywords:
- Institutional blockholders,
- Investment efficiency,
- Information asymmetry,
- agency problems,
- Investor horizon
Résumé
Cette étude examine l’impact des investisseurs institutionnels sur l’efficacité des investissements des entreprises. À l’aide d’un échantillon de 283 entreprises françaises cotées de 2002 à 2016, nous constatons que les investisseurs institutionnels ayant des blocs de contrôle dans le capital des firmes réduisent l’ampleur du surinvestissement. Cette conclusion reste inchangée après avoir pris en compte les biais liés à l’endogénéité. De plus, nos résultats montrent que l’inefficacité des investissements diminue en présence d’investisseurs institutionnels ayant des horizons d’investissement à plus long terme, nationaux ou étrangers, en raison de l’amélioration du contrôle interne et de la qualité de l’information. Enfin, Il apparaît que la réduction des distorsions d’investissement est plus marquée chez les entreprises confrontées à des problèmes d’agence et une asymétrie d’information importants.
Mots-clés :
- Actionnaires institutionnels,
- Efficacité des investissements,
- Asymétrie d’information,
- Problèmes d’agence,
- Horizon des investisseurs
Resumen
Este estudio examina el impacto de los inversores institucionales en la eficiencia de las inversiones de las empresas. Utilizando una muestra de 283 empresas francesas cotizadas de 2002 a 2016, constatamos que los inversores institucionales con bloques de control en el capital de las firmas reducen la magnitud de la sobreinversión. Esta conclusión se mantiene sin cambios después de haber tomado en cuenta los sesgos relacionados con la endogeneidad. Además, nuestros resultados muestran que la ineficiencia de las inversiones disminuye en presencia de inversores institucionales, tanto nacionales como extranjeros, con horizontes de inversión a más largo plazo, debido a la mejora del control interno y la calidad de la información. Finalmente, parece que la reducción de las distorsiones de inversión es más marcada en las empresas que enfrentan importantes problemas de agencia y asimetría de información.
Palabras clave:
- Accionistas institucionales,
- Eficiencia de la inversión,
- Asimetría de información,
- Problemas de agencia,
- Horizonte del inversor
Appendices
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