Date of Award
Economics and Finance
The following dissertation contains two related essays. The first essay explores how institutional investor presence impacts investments during the global financial crisis. Using OLS, industry fixed effects, and Heckman 2SLS regression approaches, I explore two ways through which institutional investors could impact investments: liquidity and monitoring. My findings best support monitoring theory. I find that institutional investors monitor capital and R&D levels to maximize crisis period firm value.
The second essay is a direct fallout from my first essay. In it, I investigate how institutional investor types influence investments. I ask, do certain types of investors improve liquidity or monitor firm investment behavior during the global financial crisis? My results suggest that long-term, dedicated institutional investors monitor firm investments more than short-term, transient investors. As a result, firms with greater dedicated investor presence perform better during the crisis periods than their peers.
Lindsay, Kathleen, "Financial Crises and Investment Behavior: The Impact of Institutional Investors" (2017). University of New Orleans Theses and Dissertations. 2383.