If workers or businesses anticipate that an expansionary monetary policy will increase inflation, the effects of this policy on real output will be which of the following? [Solved] The increasing percentage ownership of public corporations by institutional investors has A) had no effect on corporate management. After World War II, however, institutional ownership started to increase, and by 1980, institutions held $473 billion, or 34%, of the total market value of U.S. common stocks. Pension funds, for instance, invest in private equity, and insurance companies invest in mutual funds. In the mid-1960s, physical persons held as much as 84% of all publicly listed stocks in the United States. Some dividend reinvestment plans allow the stockholder to acquire shares of stock, Fundamentals of Financial Management, Concise Edition, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Daniel F Viele, David H Marshall, Wayne W McManus, Five years ago, Kennedy Trucking Company was considering the purchase of 60 new diesel trucks that were 15 percent more fuel-efficient than the ones the firm was using. Professors Harry Markowitz and William Sharpe received their Nobel Prize in Economics for their contributions to the theories of portfolio based management and the risk along with return on securities. Risk exposure due to heavy short-term borrowing can be compensated for by. Which of the following securities represents an unsecured promissory note issued by a corporation? One of the first considerations in cash management is, The difference between the amount of cash on the firm's books and the amount credited to it by its bank is, The problem in stretching out the maturity of marketable securities is that. Mainstream economics defend the concept of green growth and consider that manufacturers are the most relevant actors to develop innovative solutions and cleaner production that could address the challenges of climate . The increasing percentage ownership of public corporations by institutional investors has created more pressure on public companies to manage their firms more efficiently. The increasing percentage ownership of public corporations byinstitutional investors has. In fact, in many of these industries common ownership is even higher than it first appears because some large stockholders, such as J.P Morgan Asset Management, may be owned in part by other institutional owners. The OECD recently released a corporate governance working paper on Institutional Investors as Owners: Who Are They and What Do They Do? The paper has been written from a public policy perspective and considers the role of ownership engagement in effective capital allocation and monitoring of corporate performance. C. created more pressure on public companies to manage their firms more efficiently. Think of it this way: If you wanted to buy Iowa farmland in 1970, the average going price was $419 per acre, according to the Iowa State University Farmland Value Survey. Dec. 31 Adjusted the year-end accounts for the accrued interest earned on the White note. Horizontal shareholding does not result in increased efficiencies to firms, unlike standard mergers, because operations are not combined to create economies of scale. immediately after the deposit on his eighteenth birthday? How to develop a winning strategyand put it to work. **7. T/F, The higher the profit of a firm, the higher the value the firm is in the market. Financial instruments in the capital markets generally fall under which category in the balance sheet? a. C.created more pressure on public companies to manage their firms more efficiently. B. created higher returns for the stock market in general. Others have noted rising concentration outside of tech: two-thirds of U.S. industries became more concentratedbetween 1997 and 2012. Time amplifies the growth of money. The major difficulty in most insider-trading cases has been that inside trades have not been legally well-defined. Defining the role of institutional shareholders depends on whether the shareholders contribute capital, information, and monitoring, or whether they only contribute capital. Learn more in our, Ethics for the Investment Management Profession, Code of Ethics and Standards of Professional Conduct, Institutional Investors as Owners: Who Are They and What Do They Do?. Learn more in our Privacy Policy. In the United States, its legal to own stock in a public company. Of course, this sort of collusion is already likely to be prosecuted under current anti-trust practices. When a corporation uses the financial markets to raise new funds, the sale of securities is made in the Large-scale corporate engagement is still a relatively new phenomenon for many institutional investors. As mergers, acquisitions, and restructuring have increased in importance, agency theory, has become more important in assessing whether. Horizontal shareholding clearly has negative consequences for competition. The additional business is not expected to affect the domestic selling price or quantity of sales of Homestead Jeans Co. Some arguethat any horizontal shareholdings calculated to result in highly concentrated industries should be investigated for their effects on consumer prices. Consequently, to achieve a certain future value, more time means that you can start with less. \begin{array}{lr} Overall, institutional investors (which may offer both active and passive funds) own 80% of all stock in the S&P 500. The results show that this shareholding significantly . When the interest rate on a bond and its yield to maturity are equal, the bond will trade at par value. The increasing percentage ownership of public corporations by institutional investors has. Corporate governance issues have become less important to the financial community during the first decade of the new millennium. ** A hospital's accounts payable for the purchase of medical supplies increased$20.000 during the year. Key financial figures for **Research In Motion**s fiscal year ended February 27, 2010 are shown below. d. A corporation may wish to repurchase some of its shares for all of the following reasons except for which one? To find the yield on investment that requires the payment of a single amount initially, and which then return a single amount sometime in the future, the most efficient table one could use is, The overall weighted average cost of capital is used instead of costs for specific sources of funds because. The internationalization of the financial markets has. Compare the February 27, 2010, fiscal year-end return on assets to any subsequent years returns you are able to compute, and interpret the results. But do the damages reach further? __ ratios indicate how fast a firm can generate cash to pay bills. Overall, institutional investors (which may offer both active and passive funds) own 80%of all stock in the S&P 500. But when a firm is predominantly controlled by shareholders who also own that firms competitors, those common owners try to maximize the value of their entire portfolio encompassing competing firms in the same industries rather than the value of any one firm. The inventory decision model provides which type of information? Meanwhile, the second and third largest shareholders, hold 6 . Hope this helps. This is business as usual. So they generally do consider buying larger companies that are included in the relevant benchmark index. 6. Regarding risk levels, financial managers should. Defining the role of institutional shareholders depends on whether the shareholders contribute capital, information, and monitoring, or whether they only contribute capital. They argue that any benefit gained from Googles free services or Amazons low prices is outweighed by their chokehold on suppliers, theirpossession of mountains of personal data, and more. investors has led to increased concentration of equity ownership, with most public corporations now having a substantial proportion of their shares held by . This right should be a matter of right, but it isnt. had no effect on corporate management. Public companies have shareholders who provide additional information on how the companies will be run. Accelerate your career with Harvard ManageMentor. T/F, A major focus of the Sarbanes-Oxley Act is to make sure that publicly traded companies accurately present their assets, liabilities, and income in their financial statements. B) created higher returns for the stock market in general. The major difficulty in most insider-trading cases has been, When a corporation uses the financial markets to raise new funds, the sale of securities is made in the. It presents a global overview of ownership of different categories of . A Just-In-Time (JIT) inventory management program has all but which of the following requirements? The increasing percentage ownership of public corporations by institutional investors has, The difference between total receipts and total payments is referred to as, Maximization of shareholder wealth is a concept in which, In the percent-of-sales method, an increase in dividends, As mergers, acquisitions, and restructuring have increased in importance, agency theory has become more important in assessing whether. If a firm has fixed costs of $30,000, a variable cost per unit of $.75, and a per unit price of $6.75, the break-even point in number of units is _____. In which phase of the life cycle would one most likely encounter stock dividends? ** A zoological society made a payment of$30,000 to a local bank to repay the principal of a short-term note payable. The result is executive compensation being based more on the performance of a firms total industry rather than the firm itself. The bank requires a 20% compensating balance. The donor stipulated that the income be used for the acquisition of fixed assets. | $0.2$ | $1.40$ | $1.55$ | $1.60$ | This has led to lots of issues for corporations, from reduced transparency, to what the SEC calls material misstatements and/or omissions, to having shareholders have to take action against the corporation itself. The common characteristic is that institutional investors are not physical persons; instead they are legal entities. D. taken away the voice of the individual investor. After all, typical market share measures of concentration are associated with increased inequality. Its assets at February 28, 2009, equal$8,101 (in millions). The OECD report authors have analyzed the complex landscape of institutional investors by bifurcating them as traditional (i.e., pension funds, investment funds including mutual funds, and insurance companies) and alternative (i.e., sovereign wealth funds, private equity, hedge funds, and exchange-traded funds). The report says that the combined holdings of all institutions represented US $84.8 trillion as of 2011. Anomie, as defined by Durkheim, is frequently referred to as a state of ___________. The plan anticipates earning 9%, Morgan Corporation has 60% of its capital structure in the form of equity capital. Larger, if businesses lower prices on the products they make.\ One of the major disadvantages of a sole proprietorship is. relationship and exercise of oversight by the board of directors of the company. Submit Your Guest Blogging Articles for Success Independence.com. D) taken away the voice of the individual investor. The increase in the internationalization of financial markets has led to, Fundamentals of Financial Management, Concise Edition, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Daniel F Viele, David H Marshall, Wayne W McManus, Jeffrey Jaffe, Randolph W. Westerfield, Stephen A. Ross. | :---: | :---: | :---: | :---: | **4. | Liabilities + Equity | $10,204 | The method of bond repayment where bonds are paid off in installments over the life of the bond issue is called. Proxy firms could also shield indexes from the indirect costs of their efforts (aggravating corporate managers and causing them to divert their corporations pension assets to other funds), since the indexes are simply following the proxys guidance. Today they hold less than 40%. General Public Ownership. In the UK, the percentage has reduced from 54% to 11% in the last 50 years, and in Japan, only 18% of all public equity was held by physical persons in 2011. What is important for competition is therefore the relative influencehorizontal shareholders have on a firm compared to other owners that are more incentivized to increase that firms profits because they are not also invested in competing firms. Which of the following is not true about leverage? Read the Privacy Policy to learn how this information is used. As the interest rate increases, the present value of an amount to be received at the end of a fixed period. Which of the following is not a money market instrument? D. optimally increasing the long-term value of the firm is emphasized. Theory and evidence suggests that horizontal shareholding harms competition, consumers, and the economy. created more pressure on public companies to manage their firms more efficiently. Allow analytics tracking. C.created more pressure on public companies to manage their firms more efficiently. Institutional investors are a complex, heterogeneous group. The researchers inferred that the "mean customer performance scores differed across the three bus depots at a $95 \%$ confidence level." Institutional investors commonly compare their own returns to the returns of a commonly followed index. Do you agree. Which of the following is not a true statement about the goal of maximizing shareholder wealth? C. Although theory predicting negative effects of horizontal shareholdings dates to at least 1984, only recently has a substantial amount of research emerged that articulates how common ownership leads to anti-competitive actions, provides corroborating empirical evidence, and proposes policy responses. The present selling price is $42 per unit. Horizontal shareholding therefore hurts competition because, as Einer Elhauge of Harvard Law School has argued, it reduces each individual firms incentivesto cut prices or expand output by increasing the costs [to shareholders, and thus managers] of taking away sales from rivals. These issues are easy to imagine with direct investors(such as activist hedge funds) who typically have more concentrated holdings and thus greater ability to influence practices within a company or industry. The three largest shareholders of Apple are also three of the top four (non-individual) owners of Microsoft. Many critics claim that anti-trust enforcement has dangerously weakened since the 1980s, often citing the dominance of the tech giants as evidence of this. Horizontal shareholding also drives the historically large gap between corporate investment and profits.This gap is larger in concentrated industries and, within any industry, the investment-profit gap is driven by firms with high horizontal shareholdinglevels. **1. that inside trades have not been legally well-defined. ** A college received investment income of $45,000 from endowment investments. Profitability ratios are distorted by inflation because profits are stated in, the stock market tends to move up when inflation goes, During disinflation, stock prices tend to go up because the investor's required rate of return goes ___, A company can improve its return on equity (ROE) by changing its. Current anti-trust legislation provides a basisfor prosecuting horizontal shareholdings by banning stock acquisitions that may substantially lessen competition. A firm may adopt capital rationing because, If a firm is experiencing no capital rationing, it should accept all investment proposals, If an investment project has a positive net present value, then the internal rate of return is. But if both food trucks were instead owned by the same group of local investors, these owners would not support one truck cutting its prices because it would simply shift business from one outlet to another, with a lower total profit to the investors. The increasing percentage ownership of public corporations by institutional investors has. | Net income | 2,457 | The Sarbanes-Oxley Act set up the Public Company Accounting Oversight Board with the, responsibility for all of the following except, 80. t/f The time value of money is a useful concept in determining the value of a bond or in capital investment decisions. Financial institutions among the top ten largest shareholders of the companies on average account for 9.5% of the firms' ownership. ), each customer's performance score (out of 100 total points) was estimated. c. created more pressure on public companies to manage their firms more efficiently. more Initial Public Offering (IPO): What It Is and How It Works C. virtually all earnings are paid as dividends to common stockholders. Several studies have found clear empirical evidence that anti-competitive horizontal shareholdings lead to increased consumer prices. This way they will gain the votes of shareholders whose profits they boost by increasing the value of both the managers firm and the other companies held by that shareholder. When a firm's earnings are falling more rapidly than its stock price, its P/E ratio will. How much money is in the account | | $2.20$ | $2.50$ | $2.80$ |. It would be remarkableif firm managers did not pay attention to the profit interests of their leading shareholders given the various sources of corporate accountability such as executive compensation incentives, takeovers, control contests, labor markets, and direct communications. Capital markets do not include which of the following securities? Since the 1980s anti-trust policy has focused on one goal: consumer welfare. The Sarbanes-Oxley Act set up the Public Company Accounting Oversight Board with the responsibility for all of the following except, Net worth is equal to stockholders' equity. More worrying is the unintentional collusion through the owners corporate governance communications, the information flows between the firms and owners, and the incentives to lessen competition that common ownership brings, without any coordination or communications among the ostensibly competing firms. The increasing percentage ownership of public corporations by institutional investors has A. had no effect on corporate management. A number of features and choices define the institutional investors business model and its ability and willingness to serve as informed and engaged owners. If a firm's bonds are currently yielding 6% in the marketplace, why would the firm's cost of debt be lower? The Canadian Securities Administrators have proposed some major changes. companies searching the global financial markets for low-cost funds. Ten percent of Frank's sales are for cash, 70% of accounts receivable, You are borrowing $2 million to expand your business. Your email address will not be published. Otherwise, you are agreeing to our use of cookies. Required fields are marked *. Jury's dividend growth rate is 8%, and. A. had no effect on corporate management. $$ \hline \begin{array}{l} Copyright 2023 SolutionInn All Rights Reserved. is always associated with certain costs and requires adequate resources. ***Fast Forward*** The financial markets allocate capital to corporations by reflecting expectations of the market participants in the price of the corporation's stock. | **Probability (same for each year)** | **Price of Diesel Fuel per Gallon** | | | An emerging body of research alleges that trusts have returned in a more insidious form as horizontal shareholdings: investors that own significant shares in several competing firms. George Brown College Canada ACCOUNTING COST ACCOU, North Carolina State University BUS 320, King Abdul Aziz University FINANCE MISC, Chamberlain College of Nursing FINANCE 200, American Military University FINANCE 400, Assignment 1 Model conceptualisation 2022.pdf, meeting the outcome will generally depend on which group has collected the most, which are very difficult to imitate Leading companies have focused on, View question 1 feedback Question 2 2 2 points Why is the study of ethics, 7 Act under Statutory Authority This defense is valid if the act done was under, Usually the first step is to purge your body of drugs and manage withdrawal, BALDIA_MSPM1-GC1010-101 Transforming Organizations Syllabus, Spring 2021.pdf, Bates D 1997 September 28 The tire king Les Schwab at 80 The Oregonian Retrieved, UNDERSTANDING THE DIGITAL NEWSPAPER GENRE_ MEDIUM VS. MESSAGE.pdf, Because of absence of pumps the conditioning tank and the mixing facilities are, A Defense of Abortion by Judith Jarvis Thomson.docx, A Deep red fleshy smelling lochia B Voiding of 350 cc C Heart rate of 120, S2Q2 - EAPP - LESSON 1 - GATHER MANIFESTOES AND ANALYZE ARGUMENTS (1).pdf, With which sport is Chris Hoy associated 1 Badminton 2 Track and field 3, Fundamentals of Financial Management, Concise Edition, Principles of Risk Management and Insurance, A retirement plan guarantees to pay to you or your estate a fixed amount for 20 years. The orientation of book value per share is ________, while the orientation of market value per share is _________. Many critics claim that anti-trust enforcement has dangerously weakened since the 1980s, often citing the dominance of the tech giants as evidence of this. T/F, Financial management requires both short-term activities as well as long-term planning such as raising funds. In order to understand the level of ownership engagement, we need to identify a whole range of different determinants. How sensitive to fuel prices is this capital investment? The shareholders are all forced to accept the information, but they dont have a choice in the matter. Under normal conditions (60% probability), Financing Plan A will produce a $35,000 higher return than Plant B. The problem is that in the public market, companies are not held to the same standard of transparency that they are in the private market. This means that the potential beneficiaries of anti-competitive behaviour investors are often wealthier than the consumers who pay the higher prices.In fact, as the chart below shows, the increase in common ownerships from 1985 to 2015 coincides with the rise in wealth inequality. **Answer** Finally, the incentives to lobby for anti-competitive behavior are even greater for active funds, which are a much larger shareof horizontal shareholdings. A rapid rate of growth in sales may require, In order to estimate production requirements, we, The major difficulty in most insider-trading cases has been, In calculating gross profits, a firm utilizing LIFO inventory accounting would assume that, The pro forma income statement is important to the overall process of constructing pro forma statements because it allows us to determine a value for, In general, the larger the portion of a firm's sales that are on credit, the, The need for an increase or decrease in short-term borrowing can be predicted by. Asset managers have been added as a separate class due to the rapid growth of outsourcing to asset managers, as reflected in theUK Stewardship Code. The combination of these factors gives institutional investors a disproportionately large influence over voting outcomes. Private Equity Ownership A gap between 'as of' dates - In the case where gaps between the 'as of' dates of the holdings and the shares outstanding arise, the percentage owned could be skewed due to a sharp increase/decrease in . However, low-quality stocks must usually be sold in secondary markets, such as NASDAQ. b. The loan will be for 10 years at 12% on the declining balance and will be repaid in equal quarterly instalments. The increasing percentage ownership of public corporations by institutional investors has A. had no effect on corporate management. But a different form of monopoly has largely escaped the limelight. ** A college made loans of $100,000 to students and faculty. ___ interest rates reduce the present value amount. Since most companies dont want to be bought, they keep a portion of their profits in private. Do you need an answer to a question different from the above? Firms with an expectation for great potential tend to trade at low P/E ratios. $$ B.created higher returns for the stock market in general. ** A college received a$200,000 contribution that the donor restricted to acquiring fixed assets. The general public, who are usually individual investors, hold a substantial 59% stake in Lonza Group . Course Hero uses AI to attempt to automatically extract content from documents to surface to you and others so you can study better, e.g., in search results, to enrich docs, and more. \text { Month } & \text { Amount } \\ If a transaction or event is reported in more than one section on the statement of cash flows, you should include all sections in your answer. Which of the following is most likely to increase the final number for notes payable for short-term borrowing needs in the pro forma balance sheet? Retail investors come with a variety of wealth and sophistication, but at a high level, they're expected to be people, not firms or computer-driven trading . The increasing percentage ownership of public corporations by institutional investors hasA. As time to maturity increases, bond price sensitivity decreases. The increasing percentage ownership of public corporations by institutional investors hasA.had no effect on corporate management. Together these airlines have over halfof domestic market share. On November 12, 2014, the company received an offer from Dawkins Company for 18,000 units of the product at$32 each. **6. Consider two food trucks across the street from each other, both owned by their respective chefs. So if you are in a position to buy a public company, you may want to buy it. Companies that have higher risk than a competitor in the same industry will generally have. Out of this, 38% (US $32 trillion) was held in the form of public equity. ** A hospital's accounts receivable from patients increased $100,000 during the year. A hospital recorded depreciation expense for the year of $50,000. Authors: Ferdinand Beer, E. Russell Johnston Jr., David Mazurek, Phillip Cornwell, Brian Self, Search Textbook questions, tutors and Books, Change your search query and then try again, C. created more pressure on public companies to ma. So the public corporations have the right to hide their financial figures, but its still the shareholders who have no choice but to accept them. Similarly, common ownership among banksin a particular county is associated with higher fees and lower deposit interest rates. 1 the shift has come as more american families participate in the capital markets through pooled-investment vehicles, such as mutual funds and If interest rates fall before you sell the bond, you will sell at a higher price than if interest rates had been constant. among these very large public corporations, the percentage owned by the largest 50 institutional investors has a mean of 44.2 percent (the median is also 44.2 percent). D. taken away the voice of the individual investor. Which of the following is not an asset utilization ratio? D. taken away the voice of the individual investor. **12. By using different discount rates, the market allocates capital to companies based on their risk, efficiency, and expected returns. Select annual returns on a stock market index over 14 years from, C gold becomes more liquid D stock prices are expected to fall, A crystalline solid consists of atoms stacked up in a repeating lattice, Suppose that among people randomized to lutein tablets, at a 4-month follow-up, Compute cash flows from investing activities using the following company information.Sale of, The manager of a mining company is planning to invest in a, People have different styles of learning. B. profits are maximized on a quarterly basis. \text { February } & 2,000,000 \\ Question: The increasing percentage ownership of public corporations by institutional investors has Select one: a. had no effect on corporate management. Homestead Jeans Co. has an annual plant capacity of 65,000 units, and current production of 45,000 units. The common characteristic is that institutional investors are not physical persons; instead they are legal entities. ** A hospital's prepaid assets increased$2,500 during the year. | | Year 1 | Year 2 | Year 3 | An increase of $100,000 in inventory would result in a(n), One of the primary factors evaluated when a company is pursuing a leveraged buyout is, In examining the liquidity ratios, the primary emphasis is the firm's. Consequently, the institutional ownership percentage reflected in the 13-F filings is overstated as a percentage of total shares outstanding. Their stock prices are public, but they arent really transparent in terms of who is buying them. B.created higher returns for the stock market in general. relationship and exercise of oversight by the board of directors of the company. Insider trading occurs when. Public companies arent required to disclose their financial positions, so the more you have, the less transparency they have. | $0.2$ | $1.00$ | $1.10$ | $1.10$ | The ANOVA $F$-test resulted in a $p$-value of $.0001$. C) created more pressure on public companies to manage their firms more efficiently. How would you explain the increase in womens participation in the labor force? The traditional institutions held US $28 trillion in public equity, and alternative institutions held US $4.6 trillion in public equity. Mr. Jones borrows $5,000 for 90 days and pays $80 interest. Competing U.S. airlines share many of the same ownersand, although the effects on competition areperhaps inadvertent, the outcomes are directionally the same as the example describes. | $0.2$ | $1.30$ | $1.45$ | $1.45$ | Based on responses to 16 different items (e.g., bus punctuality, seat comfort, luggage service, etc. Assume that the aggressive plan pays for long-term demands with long-term funds and seasonal needs with short-term money. The pre-tax cost of debt for a new issue of debt is determined by, The after-tax cost of preferred stock to the issuing corporation, The cost of equity capital in the form of new common stock will be higher than the cost of retained earnings because of, A firm's debt-to-equity ratio varies at times because, The weighted average cost of capital is used as a discount rate because, Although debt financing is usually the cheapest component of capital, it cannot be used in excess because, In a general sense, "cash flow" can be said to equal, The first step in the capital budgeting process is, Capital budgeting is primarily concerned with. Maximization of shareholder wealth is a concept in which optimally increasing the long-term value of the firm is emphasized. \text { April } & 4,000,000 \\ Why are there two account titles in the amount column of the purchases journal? **11. **2. She is responsible for promoting CFA Institute standards, policies, and positions in the Asia-Pacific region. Table 1 summarizes the information on institutional ownership in total, as well as for each specific type of institutional investor. Corporate governance issues have become less important to the financial community during the first decade of the new millennium. 7. General Public Ownership. Higher returns always induce that stockholders should invest in a company. Increasing interest expense will have what effect on EBIT? $$ Institutional investors also have significantly higher voting participation rates, casting votes that represent 91 percent of the shares that they hold compared with only 29 percent for retail investors. \text { October } & 5,000,000 \\ Managers needshareholders to vote for their corporate initiatives and their re-election. U.S. sectors where concentration rose the most experienced the largest declines in the labor shareof firms profits. Which of the following would represent a use of funds and, indirectly, a reduction in cash balances? \text { Month } & \text { Amount } \\ $$ See below and advise:4. Others think the government should publicly offer investors a safe harborfrom prosecution if they either limit their active holdings of a firm to a small stake or own the shares of only one firm per industry. d. taken away the voice of the individual investor. Padma Venkat, CFA, is former director of capital markets policy at CFA Institute. The rise and consolidation of intermediated asset managementincreases the shareholder power of large diversified owners and reduces portfolio firms competitive incentives. Since 1995, they have increased the dividend at a compounded annual growth rate of 4.4% and support that growth with Adjusted Funds from Operations (AFFO) that has historically grown at 5.1%. To accomplish either, smart managers will maximize the weighted average of their shareholders profitsfrom across their diverse portfolio of stockholdings. Another is to require filers using the conventional early warning system to report decreases of 2% and falling below the 5% reporting threshold. Institutional investors have grown so much because they offer small-scale savers the opportunity to invest in diversified funds with economies of scale. ** A voluntary health and welfare organization received $25,000 from a donor who stipulated that the amount be invested permanently. The latter shareholder will not be interested in engaging with the company. ** A college's accrued interest receivable related to student and faculty loans increased $5,000 during the year. The OECD report authors recognize that institutional investors increasingly invest in instruments offered by other institutional investors.