Do Common Institutional Investors Influence Corporate Share Buybacks?
Share repurchase is not only an important financial activity of a company,but also a basic institutional arrangement of the capital market.With the increasing number of common institutional investors in China,their influence on corporate behavior is increasing.Based on the sample of A-share listed companies in China from 2005 to 2021,the bidirectional fixed effect model is used to find through empirical test that common institutional investors will have a negative impact on the company's share repurchase behavior.After a series of endogeneity and robustness tests,the conclusion remains valid.Mechanistic studies show that common institutional investors will improve market expectations and corporate internal governance level,and thus reducing the incentive to buy back shares.Further analysis shows that this effect is greater in companies with low management ownership and poor cash resources,and that common institutional investors in the financial sector have a greater impact.This paper not only enriches the related research on the influencing factors of the economic consequences of common institutional investors and share repurchase,but also provides new enlightenment for improving corporate governance.
common institutional investorsshare repurchaseasymmetric informationcost of agency
万方数据
维普
