<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>The research problem of this study is focused on examining the impact of the ownership of institutional investors on the corporate governance of Croatian companies. The problem was approached comprehensively such that institutional investors were analysed as both homogeneous and heterogeneous groups (investment funds, pension funds, insurance companies). The results of this study reveal a statistically significant impact of institutional investor ownership being viewed as both homogeneous and heterogeneous groups on business performance and financial position, which reduces the gap between ownership intentions and management interests, thereby resulting in an increase in shareholder wealth while limiting the satisfaction and social goals of a company.</p>
</abstract>

The research problem of this study is focused on examining the impact of the ownership of institutional investors on the corporate governance of Croatian companies. The problem was approached comprehensively such that institutional investors were analysed as both homogeneous and heterogeneous groups (investment funds, pension funds, insurance companies). The results of this study reveal a statistically significant impact of institutional investor ownership being viewed as both homogeneous and heterogeneous groups on business performance and financial position, which reduces the gap between ownership intentions and management interests, thereby resulting in an increase in shareholder wealth while limiting the satisfaction and social goals of a company.

The Impact of Institutional Investors’ Ownership on Performance and Financial Position: Evidence from Firms in the Republic of Croatia

PhD, Assistant, Faculty of Organization and Informatics

PhD, Full Professor, Faculty of Economics & Business – Zagreb

PhD, First-time Full Professor, Faculty of Organization and Informatics

South East European Journal of Economics and Business

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

The research problem of this study is focused on examining the impact of the ownership of institutional investors on the corporate governance of Croatian...

The Impact of Institutional Investors’ Ownership on Performance and Financial Position: Evidence from Firms in the Republic of Croatia

Published Online: Jul 12, 2021

Page range: 53 - 69

DOI: https://doi.org/10.2478/jeb-2021-0005

Keywords
institutional investors, corporate governance, investment time horizon, portfolio investment style, business performance, financial position, panel data, GMM estimators

© 2021 Ivana Đunđek Kokotec et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

The Impact of Institutional Investors’ Ownership on Performance and Financial Position: Evidence from Firms in the Republic of Croatia

Published Online: Jul 12, 2021

Page range: 53 - 69

DOI: https://doi.org/10.2478/jeb-2021-0005

Keywordsinstitutional investors, corporate governance, investment time horizon, portfolio investment style, business performance, financial position, panel data, GMM estimators

© 2021 Ivana Đunđek Kokotec et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Keywords
institutional investors, corporate governance, investment time horizon, portfolio investment style, business performance, financial position, panel data, GMM estimators