Foreign institutional investors and the great productivity slowdown

Arbeitspapier

This article analyzes the impact of institutional investors on firm productivity duringthe financial crisis 2008/09 across European manufacturing industries. Using propen-sity score matching combined with a difference in differences estimator I find a positivesignificant effect of 2% of foreign institutional ownership. Employing a variety of prox-ies for financial constraints, the article shows that the effect is driven by industries,countries, and firms that are more financially constrained indicating that foreign insti-tutional ownership prevents the known productivity slowdown during the financial crisisby alleviating financial constraints.

Object Details

• ISBN: 978-3-86304-378-0
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: DICE Discussion Paper ; No. 379

Classification and Topics

• Classification: Wirtschaft ; Economic Impacts of Globalization: Microeconomic Impacts ; Pension Funds; Non-bank Financial Institutions; Financial Instruments; Institutional Investors ; Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill ; Financial Crises ; Firm Performance: Size, Diversification, and Scope ; Firm Behavior: Empirical Analysis ; Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
• Subject: Institutional Investors ; Financial Crisis ; Productivity ; Financial Constraints

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Schain, Jan Philip
• Event: Veröffentlichung
• (who): Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE)
• (where): Düsseldorf
• (when): 2022

Further information

• Handle: http://hdl.handle.net/10419/249376
• Last update: 10.03.2025, 11:43 AM CET