| Autor: |
Chee Seng Cheong, Paul Brockman, Chia-Feng Yu, Ralf Zurbruegg |
| Rok vydání: |
2021 |
| Předmět: |
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| Zdroj: |
International Review of Economics & Finance. 74:418-433 |
| ISSN: |
1059-0560 |
| Popis: |
This study examines the relationship between internal tournament competition and corporate ownership structure. Since sophisticated investors are more likely than naive investors to understand the value-creating incentives of internal tournaments, we expect that tournament-oriented firms will attract greater ownership interest among institutional investors than individual investors. We first formalize this insight in a model and then test its empirical implications using 25 years of market data. We find strong support for our main hypothesis that internal tournament incentives are positively related to institutional ownership. This finding is robust to alternative measures of tournament competition and potential endogeneity issues. Overall, our results are consistent with the notion that institutional investors gravitate towards firms with stronger tournament competition. |
| Databáze: |
OpenAIRE |
| Externí odkaz: |
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Full Text from ScienceDirect