Institutional Ownership and Stock Price Crash Risk

Inhaltsverzeichnis (Table of Contents)

• Introduction
• Literature review
  • The principal-agent theory
  • Institutional investors
  • Stock price synchronicity
  • Stock price crash risk
• Data and methodology
  • Sample description
  • Variables and proxies
  • Regression design and approach
• Regression results
  • Analyzing holding levels and trading of institutional investors
  • Institutional ownership and crash risk
  • Institutional ownership and crash risk during the financial crisis
  • Robustness checks
• Conclusion

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This work aims to investigate the relationship between institutional investor activities and stock price crash risk. It analyzes how different types of institutional investors influence corporate governance and risk management, ultimately impacting the probability of stock price crashes. The study examines the role of institutional ownership and trading in mitigating or exacerbating crash risk, considering both long-term and short-term investors.

• The role of institutional investors in corporate governance and risk management.
• The influence of institutional ownership and trading on stock price crash risk.
• The impact of different types of institutional investors (long-term vs. short-term) on crash risk.
• The potential for institutional investors to mitigate or exacerbate crash risk.
• The implications of these findings for corporate governance and investor behavior.

Zusammenfassung der Kapitel (Chapter Summaries)

• Introduction: The chapter introduces the concept of stock price crashes, their causes, and the growing body of research on this topic. It highlights the importance of corporate governance and the role of institutional investors in mitigating crash risk.
• Literature review: This chapter reviews existing theories and empirical evidence related to institutional investor behavior, stock price synchronicity, and crash risk. It examines the principal-agent theory and discusses the different types of institutional investors and their motivations.
• Data and methodology: The chapter outlines the data sources, sample description, and methodologies used in the study. It explains the variables and proxies employed to measure institutional ownership, trading activity, and crash risk.
• Regression results: This chapter presents the results of the regression analysis, exploring the relationship between institutional ownership and trading and the probability of stock price crashes. It examines the impact of different types of institutional investors and analyzes the findings in the context of the global financial crisis.

Schlüsselwörter (Keywords)

The study focuses on the relationship between institutional investor activities, corporate governance, and stock price crash risk. Key concepts include institutional ownership, institutional trading, stock price synchronicity, crash risk, principal-agent theory, and the global financial crisis. The analysis examines the impact of different types of institutional investors (long-term vs. short-term) and explores the potential for institutional investors to mitigate or exacerbate crash risk.