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Book part
Publication date: 29 October 2018

Larisa A. Ilyina, Yuliya A. Panteleeva, Dmitriy L. Skipin and Alexandra N. Bystrova

The purpose of this chapter is to study institutional contradictions in the existing concept of institutional economy.

Abstract

Purpose

The purpose of this chapter is to study institutional contradictions in the existing concept of institutional economy.

Methodology

The authors use the methodology of neo-institutional analysis, based on qualitative description and modeling of the process of institutionalization of socioeconomic phenomena and processes, logical analysts of their essence, advantages and drawbacks, and the method of graphical presentation of information (method of formalization).

Results

Graphical interpretation of institutional economy as a social institute on qualitative analysis reflects the determined institutional contradictions of this concept that are related to the dual character of the role of information, violation of the logic of the process of institutionalization, and uncertainty toward information exchange. The authors determine the institutional gaps in the conceptual model of information economy that show a necessity for the development of its methodological provision.

Recommendations

The determined logical mismatches in the model of information economy show nonoptimality of its concept and existence of perspectives, which depicts a necessity for its improvement – which is the main recommendation of the authors.

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Book part
Publication date: 23 November 2017

Michael J. Mueller, Guus Hendriks and Arjen H.L. Slangen

In this chapter, we aim to shed more light on the role of formal institutional distance in firms’ foreign entry mode choices by accounting for the direction of that…

Abstract

In this chapter, we aim to shed more light on the role of formal institutional distance in firms’ foreign entry mode choices by accounting for the direction of that distance. Specifically, we distinguish between foreign entries where the host country is institutionally less developed than the investing firm’s home country (negative institutional distance) and those where the host country’s institutions are comparatively more developed (positive institutional distance), and explore whether these different types of entries are implemented through different equity-based modes. We take an information economics perspective to develop hypotheses on the effects of positive and negative formal institutional distance on firms’ choices between greenfields and acquisitions, and between full and partial ownership of greenfield and acquired subsidiaries. We test our hypotheses on a sample of 1,070 foreign entries made by 796 emerging market multinationals originating from 14 countries. Controlling for the host country’s formal institutional quality and other factors, we find that negative institutional distance increases the likelihood that a foreign entry takes the form of a greenfield investment rather than an acquisition and that positive institutional distance decreases that likelihood. We also find that negative institutional distance increases the chances that firms choose greenfield joint ventures over wholly owned greenfields and full over partial acquisitions. Finally, we find that positive institutional distance does not affect firms’ ownership stake choices, neither for greenfields nor for acquisitions. Overall, these findings argue for a nuanced, contingency view of the role of formal institutional distance in foreign entry mode choices. To the best of our knowledge, this study is the first to use information economics to construct a holistic picture of firms’ equity-based entry mode choices, taking into account both establishment and ownership modes.

Details

Distance in International Business: Concept, Cost and Value
Type: Book
ISBN: 978-1-78743-718-0

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Article
Publication date: 7 August 2017

Yuchen Lin, Yangbo Song and Jinsong Tan

As an important participant in capital market, institutional investors play a principal role in improving corporate governance. Most existing studies have focused on…

Abstract

Purpose

As an important participant in capital market, institutional investors play a principal role in improving corporate governance. Most existing studies have focused on institutional ownership and its economic consequences. Nevertheless, they have not provided sufficient insight on the governance behavior of institutional investors as well as the underlying incentive mechanism. This paper aims to analyze the governance role of institutional investors in information disclosure and provide related evidence.

Design/methodology/approach

The authors propose a novel theory to analyze the institutional investors’ behavior of active governance and shows that such behavior significantly improves the quality of corporate information disclosure. The authors then conduct an empirical test by using the hand-collected data of institutional investors’ corporate visits during 2009-2014 in ChiNext.

Findings

This paper finds that the firms visited by institutional investors are more likely to have a greater tendency of disclosing more information than the firms that have never been visited. In particular, a higher frequency of visits or a larger number of participating institutional investors leads to a higher degree of disclosure. Consistent with the notion that on-site visits endow institutional investors with more frequent and active interaction with the firms, the authors find that the results are stronger for firms which are visited on-site, when compared with other information acquisition activities such as online meetings, conference calls and investor meetings. In addition, the effect of a site visit is greater when the site visit is conducted by securities companies or funds rather than insurance companies or QFIIs. Finally, the test of the direction of causality suggests that visits conducted by institutional investors leads to more information disclosure, rather than the reverse. Collectively, these results show that institutional investors’ participation enhances corporate information disclosure.

Originality/value

This paper explores the internal mechanism that institutional investors affect corporate governance by improving information disclosure through their corporate visits. This is the first study to investigate the influence of institutional investors’ corporate visits and their economic consequences.

Details

Nankai Business Review International, vol. 8 no. 3
Type: Research Article
ISSN: 2040-8749

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Article
Publication date: 1 June 2012

Gamel O. Wiredu

This paper aims to take an institutional approach to the analysis of organisational‐level challenges of information systems (IS) innovation in public organisations. It…

Abstract

Purpose

This paper aims to take an institutional approach to the analysis of organisational‐level challenges of information systems (IS) innovation in public organisations. It seeks to answer the question: how can the challenges of IS innovation in public organisations, presented by the interactions between IT and public bureaucracy, be explained and addressed?

Design/methodology/approach

The paper is an empirical study approached with an interpretive philosophy that influenced the gathering of qualitative evidence.

Findings

The analysis reveals the institutional tensions between the low‐entrepreneurial ethos of public organisations and the efficiency principle of information technology (IT).

Practical implications

Public bureaucracy should be adjusted by de‐institutionalising its variable characteristics such as standardised and centralised employee roles and information. Information technology should be adjusted by restraining commitments to and expectations in public organisations.

Originality/value

The paper argues that the primary principle of IS innovation should be institutional adjustments of public bureaucracy and information technology. It informs e‐government policy makers to think primarily about the institutional relations between IT and public bureaucracy.

Content available
Article
Publication date: 7 August 2017

Chester D. Haskell

This paper explores the roles of institutional research (IR) units in higher education, examining both internal and external responsibilities and demands. The purpose of…

Abstract

Purpose

This paper explores the roles of institutional research (IR) units in higher education, examining both internal and external responsibilities and demands. The purpose of this paper is to encourage a broader strategic discussion of the missions and capacities of such academic institutional entities.

Design/methodology/approach

The methodology employed begins with a review of relevant literature, followed by critical observations of an experienced reflective practitioner. Beginning with the premise that academic institutions are central, the paper discusses the external environment of institutions and the requirements placed on their internal IR operations. A core question is presented: research for whom? Both traditional and alternative organizational models are discussed in this light. The paper then explores ways in which data needs might be aligned in order to provide accountable, useful and transparent information to all stakeholders, internal and external.

Findings

Findings show that the linking of internal information needs with those of external actors is key to effective operations; that IR units should seek to be a bridge between their institution and its environment so that effective information can be provided to all who need it. The paper is not designed as a detailed operational roadmap, but rather to highlight issues for examination within the context of specific institutional and agency situations.

Originality/value

Its originality stems from the focus on such linkages and the call for organizational leaders to recognize the full value of IR both within and across organizational boundaries.

Details

Higher Education Evaluation and Development, vol. 11 no. 1
Type: Research Article
ISSN: 2514-5789

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Article
Publication date: 7 June 2011

Juan Wang

The aim of this paper is to examine how informed traders, i.e. transient institutional investors that actively trade on information to maximize investment profits, use…

Abstract

Purpose

The aim of this paper is to examine how informed traders, i.e. transient institutional investors that actively trade on information to maximize investment profits, use insider trading signals in addition to accounting numbers to mitigate future abnormal returns.

Design/methodology/approach

Using a sample of 44,843 firm‐quarters from 1988 to 2001 in the USA, the paper examines how informed investors use insider trading signals and the extent to which the use of these signals by informed investors impacts insiders' future abnormal returns from trading.

Findings

This study finds that the change in transient institutional ownership in the next‐quarter is positively associated with net insider trading in the current quarter, after controlling for accounting information (including total accruals, unexpected earnings, etc.). In addition, this study finds that insider profits decrease in transient institutional ownership, consistent with the notion that trading by informed investors limits insider profits.

Research limitations/implications

The institutional ownership data are only available on a quarterly basis, which may not capture institutional investors' immediate response to insider trading signals.

Originality/value

This study provides systematic evidence on how informed traders use insider trading signals. This study adds to existing knowledge of the information environment of institutional investors by showing that transient institutional investors use insider trading signals in addition to accounting information in making investment decisions. Moreover, this study contributes to the literature on the determinants of insider profits by providing evidence that informed trading by investors has incremental power to explain insider profits.

Details

International Journal of Accounting & Information Management, vol. 19 no. 2
Type: Research Article
ISSN: 1834-7649

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Article
Publication date: 23 June 2020

Jin-Ying Wang

This study explores whether institutional investors can distinguish an undervalued share repurchase from a falsely signaled share repurchase. This study also aims to…

Abstract

Purpose

This study explores whether institutional investors can distinguish an undervalued share repurchase from a falsely signaled share repurchase. This study also aims to determine what information institutions use when investing in repurchase stocks.

Design/methodology/approach

This study uses unique Taiwanese data and concentrates on foreign institutions because they are the most sophisticated investors in Taiwan.

Findings

The results show that foreign institutional trading in open market repurchase (OMR) stocks will earn both positive concurrent and post-OMR excess returns. In addition, there is a significant positive relationship between pre-OMR insider trading and foreign institutional trading during the OMR period; that is, foreign institutions follow insiders to trade their OMR stocks.

Practical implications

This study finds that foreign institutions use publicly available data on insider trading to choose OMR stocks and create excess returns. This encourages individual investors without private information, who can also earn a positive return if they diligently study available public information.

Originality/value

This study contributes to the international investment literature by determining the price impacts associated with foreigner trading in the firm-level returns of the host country. In addition, this study finds that foreign institutions choose OMRs based on insider trading information, which fills the gap in existing studies on share repurchasing. Moreover, this study enriches the insider literature by showing how foreign institutions can benefit by using insider trading information.

Details

Managerial Finance, vol. 46 no. 10
Type: Research Article
ISSN: 0307-4358

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Article
Publication date: 22 June 2012

Preedip Balaji Babu, Kadari Santosh Kumar, Nilesh A. Shewale and Abhinav K. Singh

The objective of this paper is to find out the rationale for institutional repository (IR) categories, and the challenges in sustainable development of open scholarship to…

Abstract

Purpose

The objective of this paper is to find out the rationale for institutional repository (IR) categories, and the challenges in sustainable development of open scholarship to facilitate scholarly communication.

Design/methodology/approach

This is a critical study method adopted to find out the categories of IR and various developmental challenges with the aid of related literature.

Findings

IR categories and their nomenclature are found to be overlapping when used by repository registries and librarians alike. As the digital objects in the repositories are expanding, with a requirement to store new entities as diverse as linked data and web archives, IR categorization becomes difficult to determine. Even though the growth of IRs in India is phenomenal, concerted research and development efforts to strengthen digital infrastructure and repository solutions in multilingual settings are slow.

Originality/value

With the rapid growth of IRs worldwide, the categories with which these are classified is examined. As a contentious player in scholarly communication process, the challenges of IRs' development are underlined. The prospects and deployment of IRs requires funding and an appropriately skilled workforce, along with government support. This is viewed from global and Indian perspectives.

Details

Library Review, vol. 61 no. 6
Type: Research Article
ISSN: 0024-2535

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Article
Publication date: 2 February 2015

Aymen Ajina, Faten Lakhal and Danielle Sougné

– The purpose of this paper is to examine the effect of institutional investors’ ownership and type on information asymmetry and stock market liquidity in France.

Abstract

Purpose

The purpose of this paper is to examine the effect of institutional investors’ ownership and type on information asymmetry and stock market liquidity in France.

Design/methodology/approach

The sample includes 162 French-listed firms from 2007 to 2009. The methodology relies on linear regressions using the method of ordinary least square. Before examining the interaction between liquidity and institutional investors, the authors check for the existence of the endogeneity problem by applying the Durbin-Wu-Hausman test of Davidson and MacKinnon (1993). The results of the endogeneity test show that institutional investors’ ownership and stock liquidity are endogenous. A simultaneous equation model using the double least square method is then tested to address this problem.

Findings

The findings show that the proportion of institutional investors has a positive and significant effect on stock-market liquidity, which confirms the signal theory and trading hypothesis. These investors perform high trading activity which favorably affects market liquidity. The results also show that pension funds improve stock liquidity. This result suggests that pension funds manage huge assets decreasing transaction costs and improving liquidity. They display a positive signal to the market about more transparency and a low level of informational asymmetry.

Practical implications

These results highlight the institutional investors’ role in defining the level of liquidity on the French market. The findings also stress the relevance of developing institutional investors’ demand for the Paris market in order to better assess firm value, protect minority ownership and improve market liquidity.

Originality/value

In the French institutional setting, institutional investors act as a control device since minority shareholder interests are less protected than in Anglo-American counterparts. This result highlights the significant role of institutional investors in corporate governance structures and on financial markets. Their presence is a guarantee for minority interest protection and for more liquid stocks.

Details

International Journal of Managerial Finance, vol. 11 no. 1
Type: Research Article
ISSN: 1743-9132

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Article
Publication date: 1 August 2016

Priyantha Mudalige, Petko S Kalev and Huu Nhan Duong

The purpose of this paper is to investigate the immediate impact of firm-specific announcements on the trading volume of individual and institutional investors on the…

Abstract

Purpose

The purpose of this paper is to investigate the immediate impact of firm-specific announcements on the trading volume of individual and institutional investors on the Australian Securities Exchange (ASX), during a period when the market becomes fragmented.

Design/methodology/approach

This study uses intraday trading volume data in five-minute intervals prior to and after firm-specific announcements to measure individual and institutional abnormal volume. There are 70 such intervals per trading day and 254 trading days in the sample period. The first 10 minutes of trading (from 10.00 to 10.10 a.m.) is excluded to avoid the effect of opening auction and to ensure consistency in the “starting time” for all stocks. The volume transacted during five-minute intervals is aggregated and attributed to individual or institutional investors using Broker IDs.

Findings

Institutional investors exhibit abnormal trading volume before and after announcements. However, individual investors indicate abnormal trading volume only after announcements. Consistent with outcomes expected from a dividend washing strategy, abnormal trading volume around dividend announcements is statistically insignificant. Both individual and institutional investors’ buy volumes are higher than sell volumes before and after scheduled and unscheduled announcements.

Research limitations/implications

The study is Australian focused, but the results are applicable to other limit order book markets of similar design.

Practical implications

The results add to the understanding of individual and institutional investors’ trading behaviour around firm-specific announcements in a securities market with continuous disclosure.

Social implications

The results add to the understanding of individual and institutional investors’ trading behaviour around firm-specific announcements in a securities market with continuous disclosure.

Originality/value

These results will help regulators to design markets that are less predatory on individual investors.

Details

International Journal of Managerial Finance, vol. 12 no. 4
Type: Research Article
ISSN: 1743-9132

Keywords

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