This study empirically examines the relationship between the blockholder exit threats (ETs) and management tone manipulation, based on two competing hypotheses: the "governance hypothesis" and the "market pressure hypothesis." The study aims to explore the impact and mechanisms of ETs on the...

Should investors screen out non-responsible firms from their portfolio, or invest in them and engage with the management? This paper evaluates the relative effectiveness of these exit and voice strategies and uncovers the conditions under which each strategy is most impactful. Using a...