Abstract
Extant literature has widely examined the role of various antecedents of institutional ownership across the world. Majorly, literature has examined the role of corporate governance and firm-level characteristics on institutional ownership. However, scarce empirical literature exists on the role of economic policy uncertainty (EPU) on institutional ownership. In this study, I examine the effect of various EPU measures on institutional ownership, using longitudinal data of Indian listed firms from 2001 to 2019. I find that the firm level exposure to both global and country-level economic policy uncertainties affect institutional ownership in India. Further, this study observes the contagion effect of uncertainties in developed economies like the USA and peer emerging economies like China on the institutional ownership in India. Various EPU measures are constructed following Baker et al. (2016). Further, I find that foreign institutional ownership in India is majorly driven by the global EPU.
Published Version
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