Institutional Investment Horizons and the Cost of Equity Capital

Material TypeArticleLanguageEnglish
TitleInstitutional Investment Horizons and the Cost of Equity Capital Author(S)Najah Attig (Author)
Abstract  We examine the influence of institutional investors’ investment horizons on a firm's cost of equity. We argue that the cost of equity will decrease in the presence of institutional investors with longer-term investment horizons due to improved monitoring and information quality. Our empirical results demonstrate that the cost of equity declines in the presence of institutional investors with long-term investment horizons, all else remaining equal. ...Paginationp 441-477
SubjectManagementDescriptorsFinance
Journal TitleFinancial management  
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