Graduation Year
2011
Document Type
Dissertation
Degree
Ph.D.
Degree Granting Department
Finance
Major Professor
Christos Pantzalis, Ph.D.
Co-Major Professor
Ninon Sutton, Ph.D.
Committee Member
Delroy Hunter, Ph.D.
Committee Member
Jianping Qi, Ph.D.
Keywords
Payout policy, Share repurchases, Dividends, R&D, Investment policy, Managerial myopia, Liquidity, Herding
Abstract
Institutional investors influence corporate payout and research and development (R&D) investment policies. Higher payouts are encouraged by institutional investors, especially in firms with high free cash flow and poor investment opportunities. They also positively influence stock repurchases, particularly in firms with high information asymmetry. The substitution of stock repurchases for dividends as a percentage of total payout is encouraged by institutional investors. Institutional owners persuade firm management to increase research and development (R&D) investment overall and specifically in firms with higher stock liquidity, higher information asymmetry, lower free cash flow, and better investment opportunities. Institutional investors decrease agency costs in payout and R&D investment policy decisions.
Scholar Commons Citation
Scott, Ricky William, "Institutional Investors and Corporate Financial Policies" (2011). USF Tampa Graduate Theses and Dissertations.
https://digitalcommons.usf.edu/etd/3338
