Moreover, turnover in UK institutional
investor portfolios is significantly lower than
that in comparable US portfolios (Black and
Coffee, 1994), if we exclude foreign capital
(which in 2003 represented about 30 per cent
of the market). This relative stability may
encourage more UK institutional investors to
engage in a substantive way with portfolio
companies towards enhancing firm performance
or reducing strategic risk, rather than
simply selling shares of companies that are
underperforming (Clark and Hebb, 2004).