Quotation Duan, Rui, Larkin, Yelena, Ng, Lilian. 2018. Short-Term Institutional Investors and the Diffusion of Supply Chain Information. Northern Finance Association Annual Conference, Charlevoix, Canada, 21.09-23.09.




This paper investigates how a firm’s customer base shapes its investor clientele. We show that more concentrated customer base is associated with higher holdings of short-term, but not long-term, institutional investors. The results remain unchanged after addressing endogeneity concerns and considering short sellers as short-term investors. This evidence is consistent with the public information transfer channel, where short-term investors are able to process public, but slowly diffusing, supply chain information ahead of other market participants. Further evidence suggests that the link between customer concentration and short-term institutional ownership is stronger in the environment of high information asymmetry, as well as after the passage of Reg FD reform. Overall, our results suggest that the implications of a concentrated customer base extend beyond their impact on the product market space and key firm characteristics and that it affects shareholder composition.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Paper presented at an academic conference or symposium
Language English
Title Short-Term Institutional Investors and the Diffusion of Supply Chain Information
Event Northern Finance Association Annual Conference
Year 2018
Date 21.09-23.09
Country Canada
Location Charlevoix
JEL G11, G14, G23


Duan, Rui (Details)
Larkin, Yelena (York University, Canada)
Ng, Lilian (York University, Canada)
Institute for Finance, Banking and Insurance IN (Details)
Research areas (ÖSTAT Classification 'Statistik Austria')
5358 Corporate finances (Details)
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