Abstract
In this analysis we study the influence of institutional owners on firms’ hiring intentions. While substantial research explores the effect of institutional ownership
on corporate governance and environment practices, this study aims to investigate the social aspect of firm activities with a focus on hiring decisions using the extensive data of job postings from Lightcast. Implementing regression discontinuity design to instrument institutional ownership for firms in the Russell 1000 and Russell 2000 near the 1000 threshold, we are able to identify the causal effect. Our main result suggests that higher institutional ownership
is associated with fewer job postings indicating that institutional owners discipline managerial hiring decisions on average. This study also serves as a starting point for a deeper investigation into the social dimension of firm activities under the presence of institutional ownership.
on corporate governance and environment practices, this study aims to investigate the social aspect of firm activities with a focus on hiring decisions using the extensive data of job postings from Lightcast. Implementing regression discontinuity design to instrument institutional ownership for firms in the Russell 1000 and Russell 2000 near the 1000 threshold, we are able to identify the causal effect. Our main result suggests that higher institutional ownership
is associated with fewer job postings indicating that institutional owners discipline managerial hiring decisions on average. This study also serves as a starting point for a deeper investigation into the social dimension of firm activities under the presence of institutional ownership.