Institutional Preferences: Evidence from the Jordanian Stock Market

Asmaa Al-Amarneh, Qais Al-Kilani, Thair Kaddumi

Abstract


This paper provides evidence that institutional investors show preferences for large capitalization stocks, with good financial performance, high degree of leverage, low trade frequency, low annual return, and low price to book value ratio. Dividend Yield and stock volatility as measured by the standard deviations of daily prices do not seem to play an important role in institutional choice. The prudent man rule and fiduciary responsibilities of institutional managers might be good reasons to explain our findings.


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International Journal of Economics and Finance  ISSN  1916-971X (Print) ISSN  1916-9728 (Online)

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