Institutional portfolio composition: An examination of the prudent investment hypothesis

Eakins, Stanley G.; Stansell, Stanley R.; Wertheim, Paul

doi:10.1016/s1062-9769(99)80106-9

Cited by 22 publications

(24 citation statements)

References 22 publications

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“…Institutions prefer firms with high turnover because this means that other investors find the stock attractive, indicating that it is a prudent investment. Previous studies find a positive relationship between institutional ownership and turnover ratio (Eakins et al, 1998). Research indicates that a portfolio with a high turnover rate has higher returns than a portfolio with low turnover (Rouwenhorst, 1999).…”

Section: Literature Reviewmentioning

confidence: 89%

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Institutional investor preferences for lodging stocks

Oak

Dalbor

2008

International Journal of Hospitality Management

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Section: Literature Reviewmentioning

confidence: 89%

“…High turnover stocks are popular, and the literature indicates that institutional investors are interested in these popular stocks (Eakins et al, 1998;Hu, 1997). Risky stocks, however, do not show particular favor with institutional investors, particularly mutual funds (Del Guercio, 1996).…”

Section: Literature Reviewmentioning

confidence: 99%

Institutional investor preferences for lodging stocks

Oak

Dalbor

2008

International Journal of Hospitality Management

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“…Like Eakins, Stansell and Wertheim [8], they find that institutional investors tend to avoid extreme values of these indicators.…”

Section: Review Of Literaturementioning

confidence: 84%

“…Eakins, Stansell and Wertheim [8] examine the role of firm-specific factors (beta, and various financial indicators) in determining the investment of institutional investors. They find that financial institutions seem to avoid investments with extreme (both low and high) financial indicators, such as beta, return on assets and leverage.…”

Section: Review Of Literaturementioning

confidence: 99%

Determinants of Equity Investments by Long-Term Institutional Investors: Evidence from Brazil

Silva¹

2011

TOMANAJ

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This paper analyses the determinant factors of equity investments made by insurance companies, and pension funds. Brazil offers an interesting case study, because these institutional investors have a huge potential in increasing their equity investments in the future, because their investments in stocks nowadays are far below the limits imposed by regulators. Therefore, understanding what kind of companies these institutions would be willing to invest is important to help them on their efforts to attract these investors. Two kinds of analyses are performed. First, we use a logit model in order to estimate the probability for a given company to be in these investors' portfolios. Then we run regressions to analyze the determinants of the size of stock ownership of these investors in a given company. Our results indicate that these investors tend to invest in large, liquid, leveraged companies with good corporate governance practices.

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“…Institutions prefer to invest their "smart money" in companies with better visibility and transparency of earnings, revenues, and management. Eakins, Stansell, and Wertheim (1998) investigate the relationship between the level of institutional ownership and a number of company characteristics.…”

Section: "Smart Money"mentioning

confidence: 99%