Blockholder monitoring is central to corporate governance, but blockholders large enough to exercise significant unilateral influence are rare. Mechanisms that enable small blockholders to exert collective influence are therefore important. We present a model in which one or more sizeable lead...

Optimal risk sharing in financial markets requires investors with high risk-bearing capacity to hold relatively large stakes. But holding large stakes might incentivize such investors to expend resources in monitoring the firm, a public good. Does this dissuade them from acquiring large stakes?...