Institutional Presence

UNIVERSITY OF TECHNOLOGY SYDNEY
Finance Discipline Group 
Research Seminars in Finance
 
Topic: Institutional Presence
 
Speaker: Kelvin Tan, University of Queensland
 
Abstract: Does being located near institutional investors benefit corporations?  We examine whether the ‘presence’ of local institutional investors, as measured by the equity assets under management of local institutions, reduces information asymmetry in the stock market. Firms in high institutional presence areas experience higher liquidity, faster information incorporation, lower costs of equity capital, and less financing frictions relative to firms in low institutional presence areas. Being located near institutional investors does not increase exposure to price or liquidity shocks. These patterns remain after controlling for firm characteristics (e.g., institutional ownership, firm fixed effects) and geographical features (e.g., urban locality, area fixed effects).

 

A light lunch will be provided at 1p.m. Please RSVP for catering purposes to Mala Kapahi by 12 noon on Monday, 2nd October.
 
Date: Wednesday, 4th October 2017      
Time: 12.00 – 1.00 p.m.
Venue: University of Technology, Sydney
             Building 8
             Dr Chau Chak Wing Building
             14 - 28 Ultimo Road, Ultimo
 
Co-ordinator: Adrian Lee (Ph: +61 2 9514 7765)
 
Enquiries: Mala Kapahi (Ph: +61 2 9514 7777)
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Acknowledgement of Country

UTS acknowledges the Gadigal people of the Eora Nation, the Boorooberongal people of the Dharug Nation, the Bidiagal people and the Gamaygal people, upon whose ancestral lands our university stands. We would also like to pay respect to the Elders both past and present, acknowledging them as the traditional custodians of knowledge for these lands.