Earticle

초록

영어

This study investigates whether institutional investors with large ownership (institutional blockholders) have informational advantages over other investors. The sample of this study is constructed from institutional investors’ mandatory filings on block shareholding of greater than 5% of a firm’s shares. Institutional blockholders are classified into active institutions if they express an intention to engage in a firm’s management as their purpose of investment and into passive institutions otherwise. To verify the information content of block ownership, this study investigates the short- and long-term market reaction to announcements of institutional investors’ block ownership. Main findings are summarized as follows. First, significant cumulative abnormal returns (CARs) are observed around the announcements. The CARs are much higher for active institutions than passive institutions. Second, the stocks owned by passive asset management companies significantly outperform both the market and the benchmark portfolio in the long-term. In contrast, the stocks owned by active private investment companies significantly underperform the benchmark portfolio. Overall, the results of this study suggest that passive asset management companies have superior skills in selecting undervalued stocks and they use long-lived information when they make large investment. In contrast, the inconsistent results on short- and long-term performance of stocks owned by active private investment companies imply that private investment companies’ activism are not effective enough to meet the initial expectations of the market.

목차

Abstract
Ⅰ. Introduction
Ⅱ. Related Literature
Ⅲ. Study Sample and Methodology
1. Sample Construction
2. Research Methodology
Ⅳ. Empirical Analysis
1. Financial Features and Investment Behaviors
2. Stock Market Reaction to the Announcement of Blockholding
3. Long-term Effect of Institutional Blockholding
4. The Long-term Return over the Blockholding Period
V. Conclusion
References

키워드

저자

• Sanghyuk Byun [ Associate professor, Sogang Business School, Sogang University ]
• Youngjoo Lee [ Associate professor, Sogang Business School, Sogang University ] Corresponding Author

참고문헌

발행기관

간행물

표지보기 관심저널 등록

• 간행물명

  재무연구 [Asian Review of Financial Research]

• 간기

  계간

• pISSN

  1229-0351

• eISSN

  2713-6531

• 수록기간

  1988~2026

• 등재여부

  KCI 등재,SCOPUS

• 십진분류

  KDC 325 DDC 330