This thesis answers two major research questions: what are the investment preferences of institutional block-holders in the UK listed firms and whether their presence is associated with firm operating performance and earnings quality. Cross-sectional and panel analyses are conducted for FTSE All-Share Index constituent firms in three discrete years (1996, 1999 and 2003) and eight continuous years (1996-2003), respectively. Institutional block-holdings are positively associated with board composition, but negatively associated with directors' ownership. These findings imply that directors' ownership (board composition) is perceived by UK institutional investors as a substitute (complementary) mechanism to institutional monitoring. Institutional block-holders in the UK generally prefer smaller firms; this is interestingly different from findings in contemporary studies in the US. Dynamic models are developed for panel analyses to institutional block-holdings. The results show that institutional block-holdings are persistent up to three years. Endogenous relation does exist between institutional block-holdings and directors' ownership. Interestingly, board composition is a positive determinant to the institutional block-holdings in UK listed firms but not the other way around. Institutional. block-holders are categorized into different groups according to their domiciles, trading strategies, portfolio turnovers and business natures. Different types of institutional block-holders have heterogeneous investment preference in terms of internal corporate governance mechanisms, the firm performance and other firm specific characteristics.
| Identifer | oai:union.ndltd.org:bl.uk/oai:ethos.bl.uk:627917 |
| Date | January 2007 |
| Creators | Wang, Mingzhu |
| Publisher | University of Manchester |
| Source Sets | Ethos UK |
| Detected Language | English |
| Type | Electronic Thesis or Dissertation |
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