We show that corporate governance practices vary predictably across different types of blockholders. Nonfinancial blockholders are six times as likely to self-identify as active shareholders relative to financial blockholders. Textual analysis of regulatory filings reveals that nonfinancial...

We find, in three settings, that diversity among large shareholders (i.e., blockholders) is detrimental to firm performance. Specifically, we find that(1) disclosure of an increase in block diversity around an exogenously predetermined date is followed by a negative market reaction, while...

This essay reviews Bebchuk and Fried's "Pay without Performance: The Unfulfilled Promise of Executive Compensation". Bebchuk and Fried criticize the standard view of executive compensation, in which executives negotiate contracts with shareholders that provide incentives that motivate them to...