Institutional investment as a percentage of the overall investment in a company has increased over the years. There is a potential for conflict in the way the company is run, and the overall management goals if the institutions are overly represented at board meetings, or stockholder meetings. The goals of the investor may conflict with the company in areas such as taking risk, developing new markets, or paying dividends. This paper researches whether that investment correlates to a difference in earnings between companies that can be attributed to an ownership percentage by institutions.
Institutional Investor, Stock Price Moderation, Corporate Social Responsibility