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Executive Overview Institutional owners are taking a more active role in strategic decision-making in American corporations. In this article, the research that has been done in this area is summarized. We argue that the impact of institutional ownership on strategic management may not be neutral, as institutional investors may have a shortened timeframe for critical decisions made on the basis of limited knowledge of the firms or industries in which they operate. This article discusses the implications of the shift toward institutional control of corporations.
Graves et al. (Mon,) studied this question.