Behavioural biases of Japanese institutional investors: Fund management and corporate governance

Megumi Suto*, Masashi Toshino

*Corresponding author for this work

    Research output: Contribution to journalArticlepeer-review

    41 Citations (Scopus)


    This study examines the behavioural biases of Japanese institutional investors and discusses implications for their role in corporate governance, based on the findings of a questionnaire survey of fund managers carried out in 2003. Statistical analysis of the survey results reveals a short-term bias in fund managers' investment time horizons, herding and self-marketing to improve the appearance of portfolio performance under the pressure either of customers or of institutional restraints. We conclude that institutional investors' behaviour contradicts their role as shareholders.

    Original languageEnglish
    Pages (from-to)466-477
    Number of pages12
    JournalCorporate Governance
    Issue number4
    Publication statusPublished - 2005 Jul


    • Corporate governance
    • Fund management
    • Herding
    • Institutional investors
    • Investment time horizon
    • Self-marketing

    ASJC Scopus subject areas

    • Management of Technology and Innovation
    • Strategy and Management
    • General Business,Management and Accounting


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