| dc.description.abstract | Prior studies show that institutional investors help firms improve investment efficiency and that institutional investment horizons affect firms differently. However, prior studies have not examined the impact of institution horizons on investment efficiency. This paper fills in this gap. Employing a data sample of 153,413 firm-year observations of the U.S listed firms during the period 1980 - 2017, this paper find that short-term (long-term) institutional investors improve (reduce) firm investment efficiency. Further study shows that although information asymmetry distorts the level of investment efficiency, the presence of long-term investors can mitigate that negative effect of information asymmetry while the presence of short-term investors makes it more severe.
Keywords: institutional holdings, institution horizons, information asymmetry, investment efficiency. | en_US |
