Price informativeness and institutional ownership : Evidence from Japan

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

13 Scopus Citations
View graph of relations


Related Research Unit(s)


Original languageEnglish
Pages (from-to)627-651
Journal / PublicationReview of Quantitative Finance and Accounting
Issue number4
Online published13 Mar 2013
Publication statusPublished - May 2014


Using extensive intraday transaction and institutional ownership data of Japan, this study investigates the question of whether institutional ownership increases the extent to which equity prices reflect information about the firms' fundamentals (the degree of price informativeness) and the roles played by various types of institutional investors. The results indicate that the presence of institutional investors, especially foreign institutions, increase the amount of information aggregated in the stock prices. Such relation is robust to various liquidity measures, possible presence of endogeneity in the ownership structure, and alternative measures of price informativeness. © 2013 Springer Science+Business Media New York.

Research Area(s)

  • Institutional ownership, Japan, Price informativeness