We study the influence of the financial market on the decisions of firms in the real market. To that end, we present a model in which the shareholders portfolio selection of assets and the decisions of the publicly-traded firms are integrated through the market process. Financial access alters...

We study the influence of the financial market on the decisions of firms in the real market. To that end, we present a model in which the shareholders portfolio selection of assets and the decisions of the publicly-traded firms are integrated through the market process. Financial access alters...

This study explores developments in corporate creditworthiness before and after ownership events. We utilize the Blockholders database recently produced by Dlugosz, Fahlenbrach, Gompers, and Metrick (2006) and discover that ownership-construction is generally associated with prior and post...

This paper examines the effect of ownership structure of a controlling shareholder on the financial constraints of non-financial firms in 22 economies for the 1982-2009 period. We find that the overinvestment propensity of a controlling shareholder becomes less severe with an increase in...

We empirically test whether banks' ownership network affects the relationship between product diversification and performance for a sample of European commercial banks. We measure banks' ownership network by the distance between the bank and its largest ultimate owner in pyramids. This measure...

The financial crisis brought to light weakness in the assessments of risks and vulnerabilities in banks. Consequently, an insight into how the ownership structure of a bank affects investment decisions, performance and ultimately insolvency risk - the focus of this paper - is crucial. Our...