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

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  • Kokotec Ivana Đunđek

    (PhD, Assistant, Faculty of Organization and Informatics, University of Zagreb; Address: Pavlinska 2, 42 000Varaždin, Croatia)

  • Orsag Silvije

    (PhD, Full Professor, Faculty of Economics & Business – Zagreb, University of Zagreb)

  • Čalopa Marina Klačmer

    (PhD, First-time Full Professor, Faculty of Organization and Informatics, University of Zagreb)

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.

Suggested Citation

  • Kokotec Ivana Đunđek & Orsag Silvije & Čalopa Marina Klačmer, 2021. "The Impact of Institutional Investors’ Ownership on Performance and Financial Position: Evidence from Firms in the Republic of Croatia," South East European Journal of Economics and Business, Sciendo, vol. 16(1), pages 53-69, June.
    • Handle: RePEc:vrs:seejeb:v:16:y:2021:i:1:p:53-69:n:5
    DOI: 10.2478/jeb-2021-0005
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    References listed on IDEAS

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