The impact of institutional investors on the performance of companies listed at the PSE

Institutional investors have grown substantially in international, mature markets in last two decades parallel with the increase in their impact. They seek to own large proportions of equities; as a result they have become influential on the performance of companies in which they invest. Previous studies show no conclusive evidence on the direction in the role of institutional investors on performance. This research attempts to examine the impact of institutional investors' involvement on performance of investee companies. Performance was measured by using Tobin's q. The study was conducted using crosssectional regression analysis. And significant statistical relationships were found in this research.