Research limitations/implications - The findings show that institutions with board representation have greater
incentives to monitor management, and therefore their presence should have a positive influence on firm value.
However, at high levels of ownership, institutional investors with board representation may induce boards of
directors to make sub-optimal decisions.
Originality/value - The study provides a deeper understanding of the relationship between firm value and
institutional ownership. That is, the effect of shareholding by institutions with board representation is likely to
have a non-linear relation with firm value.