The global financial crisis has focused attention on the consequences of short-term
investment strategies and urges a reassessment of the balance between risk-taking and
risk-management (Harper Ho, 2010). Kashyap, Rajan, and Stein (2008) suggest that the
global financial crisis resulted from excessive risk-taking, highlighting the importance of
monitoring risk. In the period leading up to the global financial crisis, investors sanctioned
high levels of risk in the pursuit of high returns. Consequently, it is important to determine
whether institutional investors differ in their ability to influence managements' pursuit of
short-term returns or firm value.