The role of institutional investors on the register constitutes a significant puzzle. Concentrated investors could intervene (i.e., exercise 'voice') so as to improve firm governance mechanisms. Alternatively, acting as informed traders, they could effectively discipline management if they adopt...

Employing a database of equity portfolio holdings for active U.S. fund managers, we provide a simulation analysis of the various portfolio blends that might arise as additional active equity funds are added to a single portfolio structure. We document increased difficulties for blended...

We investigate several implications of activism by institutional investors/monitors in the microstructure equilibrium postulated by Noe (2002). The decision whether or not to monitor, which reveals the firm's value to the fund, is stochastic. Empirically, we show that net-of-transaction-cost...

In a sequence of trades in the same direction across fund managers, we expect the long-term return of a trade to be increasing in the number of subsequent trades if fund managers' trading is driven by private information. In contrast, information cascades imply the lack of such a relationship....