Cremers, Martijn
[Verfasser:in]
;
Pareek, Ankur
[Sonstige Person, Familie und Körperschaft];
Sautner, Zacharias
[Sonstige Person, Familie und Körperschaft]
Short-Term Investors, Long-Term Investments, and Firm Value
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments May 14, 2019 erstellt
Beschreibung:
We document that an increase in short-horizon investors is associated with cuts to long-term investment and increased short-term earnings. This leads to temporary boosts in equity valuations that reverse over time. To estimate these effects, we use difference-in-differences regressions around firms' additions to the Russell 2000, comparing firms with large and small increases in short-term ownership. We proxy for the presence of short-term investors using ownership by transient institutions. Our results suggest that short-term pressures by investors can lead to myopic firm behavior