Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/340417 
Year of Publication: 
2023
Citation: 
[Journal:] Borsa İstanbul Review [ISSN:] 2214-8469 [Volume:] 23 [Issue:] 5 [Year:] 2023 [Pages:] 1067-1077
Publisher: 
Elsevier, Amsterdam
Abstract: 
Common institutional ownership has become a significant form of shareholding in the capital market. Using panel data on 2395 listed companies in China from 2007 to 2020, we examine the investment efficiency of this ownership practice on microcorporate investment behavior. The estimates indicate that common institutional ownership has a significant positive relationship with corporate investment efficiency by reducing overinvestment. Further institutional heterogeneity analysis reveals that enterprises have independent and long-term investment horizon of common institutional investors, and the positive effect of common institutional ownership on enterprises' investment efficiency is stronger. The empirical results are validated by a series of robustness tests. This study provides empirical support for the performance of common institutional ownership participating in corporate governance and optimizing investment decisions.
Subjects: 
Capital market
Common institutional ownership
Institutional heterogeneity
Investment efficiency
JEL: 
G32
G34
L22
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article
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