Why do large shareholders adopt a short-term versus a long-term investment horizon in different firms?

I ask why the same large shareholders have different investment horizons. Using data for 1998-2013, I examine four fundamental firm policies for their potential influence on blockholders' investments with different time horizons. The panel ordinary least squares, difference-in-difference (using the Sarbanes-Oxley Act), logistic, and dynamic generalized method of moments regression analyses reveal that blockholders adopt a short-term horizon in smaller firms with a less independent board, high leverage, and high dividends while the same blockholders keep their investments longer in firms with a more independent board and low dividends. Under various economic conditions, different firm characteristics gain importance in blockholders' decision on short-term versus long-term investments.