We find that transient institutions, characterized by diversified portfolios with high turnover, are attracted by the larger liquidity and increase their holdings in firms with higher quality of financial statements and thus boost these stock prices during market downturns. Therefore, transient...

This paper uses data of Chinese A-share listed firms from 2008 to 2020, and examines the effect of institutional investors on corporate capital structure by considering different types of institutional investors and different firm types. The results find that institutional investors have a...