We investigate the relationship between operational leanness and institutional ownership. Based on a sample of 12,291 firm-year observations of US manufacturing firms from 1998 to 2020, we find leaner firms to attract significantly more institutional investors - both in terms of the fraction of shares held and the number of institutional investors holding shares of the firm. This finding holds in several tests addressing endogeneity concerns. Contrary to studies investigating the relationship between operational leanness and operating performance or credit ratings, our results do not provide consistent evidence that this relationship is also of a concave shape. However, we provide evidence that the relationship is stronger (i) for firms with weak corporate governance and high firm-specific monitoring costs and (ii) for active institutions, suggesting that not only firm performance considerations but also perceived lower agency costs are important mechanisms explaining why institutional investors prefer lean manufacturing firms. Taken together, these findings contribute to our understanding of institutional investors' preferences in general and across institution types.
机构:
Open Univ, Business Sch, Fac Business & Law, Milton Keynes, Bucks, EnglandOpen Univ, Business Sch, Fac Business & Law, Milton Keynes, Bucks, England
Ataullah, Ali
Le, Hang
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Univ Nottingham, Business Sch, Nottingham NG8 1BB, EnglandOpen Univ, Business Sch, Fac Business & Law, Milton Keynes, Bucks, England
Le, Hang
Wood, Geoffrey
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Western Univ, Business Sch, Dept Management & Org Studies, London, ON N6A 3K7, Canada
Trinity Coll Dublin, Dublin 2, IrelandOpen Univ, Business Sch, Fac Business & Law, Milton Keynes, Bucks, England
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Univ Texas El Paso, Dept Mkt & Management, Coll Business Adm, El Paso, TX 79968 USAUniv Texas El Paso, Dept Mkt & Management, Coll Business Adm, El Paso, TX 79968 USA
Barker, Jordan M.
Hofer, Christian
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Univ Arkansas, Dept Supply Chain Management, Sam M Walton Coll Business, Fayetteville, AR USAUniv Texas El Paso, Dept Mkt & Management, Coll Business Adm, El Paso, TX 79968 USA
Hofer, Christian
Hoberg, Kai
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Kuhne Logist Univ, Dept Operat & Technol, Hamburg, GermanyUniv Texas El Paso, Dept Mkt & Management, Coll Business Adm, El Paso, TX 79968 USA
Hoberg, Kai
Eroglu, Cuneyt
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Northeastern Univ, DAmore McKim Sch Business, Supply Chain & Informat Management Grp, Boston, MA USAUniv Texas El Paso, Dept Mkt & Management, Coll Business Adm, El Paso, TX 79968 USA
机构:
Open Univ, Business Sch, Fac Business & Law, Milton Keynes, Bucks, EnglandOpen Univ, Business Sch, Fac Business & Law, Milton Keynes, Bucks, England
Ataullah, Ali
Le, Hang
论文数: 0引用数: 0
h-index: 0
机构:
Univ Nottingham, Business Sch, Nottingham NG8 1BB, EnglandOpen Univ, Business Sch, Fac Business & Law, Milton Keynes, Bucks, England
Le, Hang
Wood, Geoffrey
论文数: 0引用数: 0
h-index: 0
机构:
Western Univ, Business Sch, Dept Management & Org Studies, London, ON N6A 3K7, Canada
Trinity Coll Dublin, Dublin 2, IrelandOpen Univ, Business Sch, Fac Business & Law, Milton Keynes, Bucks, England
机构:
Univ Texas El Paso, Dept Mkt & Management, Coll Business Adm, El Paso, TX 79968 USAUniv Texas El Paso, Dept Mkt & Management, Coll Business Adm, El Paso, TX 79968 USA
Barker, Jordan M.
Hofer, Christian
论文数: 0引用数: 0
h-index: 0
机构:
Univ Arkansas, Dept Supply Chain Management, Sam M Walton Coll Business, Fayetteville, AR USAUniv Texas El Paso, Dept Mkt & Management, Coll Business Adm, El Paso, TX 79968 USA
Hofer, Christian
Hoberg, Kai
论文数: 0引用数: 0
h-index: 0
机构:
Kuhne Logist Univ, Dept Operat & Technol, Hamburg, GermanyUniv Texas El Paso, Dept Mkt & Management, Coll Business Adm, El Paso, TX 79968 USA
Hoberg, Kai
Eroglu, Cuneyt
论文数: 0引用数: 0
h-index: 0
机构:
Northeastern Univ, DAmore McKim Sch Business, Supply Chain & Informat Management Grp, Boston, MA USAUniv Texas El Paso, Dept Mkt & Management, Coll Business Adm, El Paso, TX 79968 USA