An Analytical Study on Institutional Investors and Firm Characteristics

Abstract

Foreign Institutional Investors and Domestic Institutional Investors have a significant role in Indian capital Markets. Availability of those investors capital depends on many firm specific factors other than economic development of the country. This study analysis the contribution of Institutional Investments particularly among companies included in the CNX 500 index. The Present study considers various firm characteristics such as promoter's shareholding, firm size, dividend yield, cash position, firm size, and turnover, price to book ratio, debt to market capitalization, systematic risk, and export sales for the period 2001 to 2014. The various tools used to find out the relationship between Institutional Investors and Firm Characteristics are Descriptive Statistics, Regression Analysis, Correlation analysis and Panel Data Regression Analysis. This study examines the Firm Characteristics and Financial variables which attracts the Institutional Investors flows.