Does better liquidity for large orders attract institutional investors and analysts?

Yes. Chung, Lee, and Rösch (2020) show that liquidity for large orders improves for the treated firms with larger tick sizes after the implementation of the Tick Size Pilot Program. Accordingly, we hypothesize and find that the increased tick sizes of treated firms reduce execution costs of larger orders and thus increase institutional ownership. The effect is concentrated among the firms with lower liquidity for large orders ex-ante and mainly comes from dedicated institutional investors and quasi-indexers. We also find that analyst coverage and forecast accuracy increase for the treated firms, likely catering to higher information demand of institutional investors