We investigate how transient institutional ownership influences the level and value of cash holdings. We show that transient institutional ownership has a positive effect on cash holdings, and this linkage is more pronounced when stock and credit market conditions are less favorable. Using a...

We analyze a unique dataset that separately reports research and development expenditures for a large panel of public and private firms. We establish new empirical facts about how equity ownership status relates to innovation strategy and then compare these facts to equilibrium outcomes...

Firms added to the S&P 500 index join a prestigious and exclusive club. They want to fit in the club, which creates a “keeping up with the Joneses” effect. Firms pay more attention to their index peers after inclusion and their investment, external financing, and payouts comove more with...

We investigate the relationship between corporate social performance and institutional ownership. We distinguish between long-term and short-term institutional investors using holdings-based measures which directly capture the investment horizon of each institution. Our analysis shows that long...

Critics advocate eliminating dual class shares. We find that founding families control 89% of dual class firms, potentially confounding economic inferences regarding these structures. Using industry, market and Fama-French excess returns, we find a buy-and-hold strategy of dual class family...

This paper investigates the implications for firm equity value and ownership structure when a large institutional investor publicly excludes a firm from its portfolio due to unethical behaviour. To achieve this, it makes use of the GPFG's ethical exclusions. On average, firms lose 1.72% of...

We analyze whether financial constraints of Brazilian firms are alleviated by ownership structure. More specifically, we study whether the presence of nonfinancial firms as shareholders of Brazilian firm mitigates financial constraints. We find that the presence of nonfinancial firms as...

This article examines the impact of the divergence between corporate insiders' control rights and cash-flow rights on firms' external finance constraints via generalized method of moments estimation of an investment Euler equation. Using a large sample of U.S. firms during the 1994–2002...

This paper focuses on agency theory to explain investment behavior difference between private domestic and foreign in Senegalese industry. We put domestic companies into two groups with regard to managerial ownership and institutional ownership. An augmented accelerator model with demand...

This paper develops a theoretical model predicting the difference in investment policy between entrepreneurs and family founders based on the firm ownership flexibility. Moreover, this paper provides evidence on the fact that small business with less flexible ownership structure does not exploit...