Financial strength information and institutional investor demand: Evidence from India

Cogent Economics & Finance

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