This paper provides evidence on the impact of transient (short-term) institutional investors on a firm's thrust to compete. A firm's thrust to compete, as an attribute of corporate culture, captures the relative importance of corporate values that push a firm to achieve shareholder value in the short term by emphasizing goal achievement, fast response to external information and enhanced competitiveness. We find that greater ownership by transient investors results in firms intensifying their future thrust to compete, suggesting that firms respond to these investors’ preferences and competitive pressures for achieving short-term value creation. In line with our expectations, this effect is not observed for firms with greater ownership by long-horizon institutional investors, who are incentivized to place their emphasis on long-term firm value over short-term gains. Our findings reveal that the composition of institutional ownership influences the organizational culture of firms in a non-homogeneous way. As such, we provide significant empirical insights for the ongoing debate on the implications arising from the behind-the-scenes engagement of institutional investors with management.

中文翻译：

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机构所有权和公司的竞争动力

本文提供了有关瞬态（短期）机构投资者对公司竞争动力的影响的证据。作为企业文化的一个属性，公司的竞争推动力通过强调目标实现、对外部信息的快速响应和增强竞争力，捕捉了推动公司在短期内实现股东价值的公司价值观的相对重要性。我们发现，短暂投资者拥有更多所有权会导致公司加强其未来竞争的动力，这表明公司会响应这些投资者的偏好和实现短期价值创造的竞争压力。与我们的预期一致，长期机构投资者拥有更多所有权的公司没有观察到这种影响，他们被激励将重点放在长期公司价值而不是短期收益上。我们的研究结果表明，机构所有权的构成以非同质的方式影响公司的组织文化。因此，我们为正在进行的关于机构投资者与管理层的幕后参与所产生影响的辩论提供了重要的经验见解。