Cogent Economics & Finance | |
Financial strength information and institutional investor demand: Evidence from India | |
Raja Sreedharan V1  Smitha Nair1  V. Gopikumar1  S Sreevathsava1  | |
[1] Amrita Vishwa Vidyapeetham; | |
关键词: institutional investors; financial strength; pitroski’s f score; emerging market; mutual funds; foreign institutional investors; | |
DOI : 10.1080/23322039.2019.1623751 | |
来源: DOAJ |
【 摘 要 】
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.
【 授权许可】
Unknown