The role of institutional investors on the register constitutes a significant puzzle. Concentrated investors could intervene (i.e., exercise 'voice') so as to improve firm governance mechanisms. Alternatively, acting as informed traders, they could effectively discipline management if they adopt...

Although recent research show that institutional informed trading can spur CEOs to work harder and reduce agency costs even for firms with dispersed ownership structure, it leaves unaddressed the ultimate impact of informed trading on firm value. This paper provides empirical evidence and finds...