In theory, large institutional investors are in an excellent position to overcome collective action problems and form voting coalitions to actively monitor and discipline managers of public corporations. This article argues that it is highly unlikely that voting coalitions of institutional...

This paper develops a simple model of corporate governance based on the concept of time-inconsistent misconduct. The model relaxes the standard rational choice assumption that corporate actors have time-consistent preferences and thus have perfect self-control; it therefore directly accounts for...