Becker, Bo; Cronqvist, Henrik; Fahlenbrach, Rüdiger - Institute for Financial Research (SIFR) - 2008
Large shareholders may play an important role for firm policies and performance, but identifying an effect empirically … in a public firm. We show that these shareholders have a large impact on firms. Consistent with theories of large … shareholders as monitors, we find that they increase firm profitability, increase dividends, reduce corporate cash holdings, and …