M.A. Thesis:

Active and passive institutional investors and abnormal stock returns.

Institutional investors play a significant role at any time in the functioning of capital markets, companies and economy due to having a high volume of stocks. These investors have an important role in stock price and stock returns of companies through their control over the corporate shares. Thus, this study investigated the relationship between institutional investors and abnormal stock returns. Accordingly, 95 companies were examined in the period from 2011 to 2015 in the Stock Exchange. The hypotheses were analyzed using panel data and combined regression methods and the obtained results demonstrated that active institutional investors make a significant positive impact on abnormal stock returns. But passive institutional investors do not significantly influence abnormal stock returns. Further, institutional investors have a significant positive effect on abnormal stock returns.

Keywords: Institutional investors، Institutional investors active، Passive institutional investors، Stock retu