Edmans, Alex; Levit, Doron; Reilly, Devin - C.E.P.R. Discussion Papers - 2014
This paper studies the corporate governance and asset pricing implications of investors owning blocks in multiple firms …. Common wisdom is that multi-firm ownership weakens governance because the blockholder is spread too thinly. We show that this … need not be the case. In a single-firm benchmark, the blockholder governs through exit, selling her stake if the firm …