This paper investigates the impact of the ownership by institutional investors who are geographically close (local) and have long-term investment horizons (long-term) on corporate social responsibility (CSR) activities. Using a panel data of S&P 500 firms over the period between 1995 and 2009,...

We provide new evidence that highlights the effect of geographic proximity on the role institutional investors play by showing that, while bank trusts are passive with distant firms, they are non-passive with local firms and reduce their risk-taking. We find that concentrated local bank trust...

This study addresses the debate over the relation between institutional ownership and dividend payout through the lens of the agency theory. We hypothesize that only institutional investors with certain traits are likely to monitor and conditioning on firms' financial performance, they will use...