Greener pastures and the impact of dynamic institutional preferences

• 成果类型: Article
• 署名作者: Bennett, JA; Sias, RW; Starks, LT
• 署名单位: Washington State University; University of Massachusetts System; University of Massachusetts Boston; University of Texas System; University of Texas Austin
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhg040
• 发表日期: 2003
• 页码: 1203
• 关键词: MUTUAL FUND PERFORMANCE; Portfolio performance; OWNERSHIP; stocks

摘要

Although institutional investors have a preference for large capitalization stocks, over time they have shifted their preferences toward smaller, riskier securities. These changes in aggregate preferences have arisen primarily from changes in the preferences of each class of institution, rather than changes in the importance of different classes. Evidence also suggests that recent growth in institutional investment combined with this shift in preferences helps explain why markets in general, and smaller stocks in particular, have exhibited greater firm-specific risk and liquidity in recent years. Additional analyses suggest that institutional investors moved toward smaller securities because such securities offer greener pastures.