This study identifies a new economic benefit of common institutional ownership, which refers to the increasingly contentious phenomenon of U.S. firms sharing stockholders with their industry competitors. We find a significantly negative relation between common ownership and insider trading...

We examine how management ability affects the extent to which capital markets rely on earnings to value equity. Using a measure of ability that captures a management team's capacity of generating revenues with a given level of resources compared to other industry-peers, we find a strong positive...