INSTITUTIONAL OWNERSHIP DIFFERENCES AND INTERNATIONAL DIVERSIFICATION: THE EFFECTS OF BOARDS OF DIRECTORS AND TECHNOLOGICAL OPPORTUNITY.

We examined the roles of institutional investors, boards of directors, and technological opportunity in relation to international diversification. Our research contributes to both agency and foreign direct investment theories. In data on 197 large U.S. firms, we found significant relationships between institutional ownership and international diversification. International diversification was favored by (1) professional investment funds along...