Institutional Investors

Working Paper

22 October 2019

The Wall Street Stampede: Exit as Governance with Interacting Blockholders

The growth of the asset management industry has made it commonplace for firms to have multiple institutional blockholders. In such firms, the strength of governance via exit depends on how blockholders react to each other's exit....

Dragana Cvijanović | Amil Dasgupta | Konstantinos Zachariadis
09 June 2020

Mandatory Arbitration of Intra-Corporate Disputes in Brazil: A Beacon of Light for Shareholder Litigation?

We survey law firms, firms and institutional investors to better understand their preferred method of intracorporate dispute resolution in Brazil. Consistent with a number of theories, we find that these organizations prefer...

Patricia Gil Lemstra | Joseph McCahery
04 February 2021

Wage gap and stock returns: Do investors dislike pay inequality?

Recent research shows that a high wage gap between managers and workers identifies better-performing firms, but the stock market does not seem to price this information. In this paper, we show that not all investors neglect pay...

Ingolf Dittmann | Maurizio Montone | Yuhao Zhu
14 March 2021

Does Limited Liability Matter? Evidence from a Quasi-Natural Experiment

We use the enactment of limited liability legislation across Canadian provinces to examine the effect of the change in liability status on firm outcomes for a group of public firms known as income trusts. We show that the switch from...

Yrjö Koskinen | Nga Nguyen | J. Ari Pandes