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The Impact of Type of Institutional Ownership on Future Stock Price Crash Risk: Evidence from Companies Listed in Tehran Stock Exchange (TSE)
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Mohammad Hosein Vadeei Noghabi1   , Amin Rostami * 1 |
| 1- Ferdowsi University |
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Abstract: (10547 Views) |
| In this study, the impact of type of institutional ownership on future stock price crash risk of companies listed in Tehran stock exchange (TSE), based on data from 80 companies during the years 2005-2013 is investigated. In this regard, one main hypothesis and two sub-hypotheses are set. The statistical methods used in testing hypotheses are logistic and panel data regression. Findings show that institutional ownership is positively associated with future stock price crash risk. But, after dividing institutional ownership into active and inactive, the results indicate that the positive impact of institutional ownership on future stock price crash risk posed by inactive institutional ownership. In other words, active institutional ownership (inactive institutional ownership) is negatively (positively) associated with future stock price crash risk, consistent with findings that active institutional investors more actively monitor management than other types of investors. |
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| Keywords: Future Stock Price Crash Risk, Institutional Ownership, Active Institutional Ownership, Inactive Institutional Ownership |
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Full-Text [PDF 902 kb]
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Type of Study: Applicable |
Subject:
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