Publication Type : Journal Article
Publisher : Cogent Economics & Finance
Source : Cogent Economics & Finance, (ABDC - B Category), 2019.
Url : https://www.researchgate.net/publication/333499930_Financial_Strength_Information_and_Institutional_Investor_Demand_Evidence_from_India
Campus : Kochi
School : Department of Management, School of Business
Department : Department of Management
Year : 2019
Abstract : In this paper, we examine whether foreign institutional investors (FII) and mutual funds (MF) show a higher preference for fundamentally stronger firms. We employ Pitroski’s F score and its constituents (profitability, efficiency, and leverage) to measure the fundamental strength of firms. Further, we examine the preferences of FIIs and MFs by conditioning on size and book-to-market ratio. Overall, the results indicate that both types of institutional investors prefer firms with higher expected profitability and are willing to take higher risks. FIIs show a higher preference for riskier firms and MFs prefer firms with higher profitability.
Cite this Research Publication : V. Gopikumar, Smitha Nair, S., S., and R., S. V., “Financial strength information and institutional investor demand: Evidence from India”, Cogent Economics & Finance, (ABDC - B Category), 2019.