This study examines the impact of common ownership on industry output and prices from 1997 to 2016. Common ownership is measured using a modified Herfindahl-Hirschman Index delta and industry ownership by the largest institutional shareholder. The findings indicate that common ownership has an...

This study analyzes whether corporate financing policies of the US industrial firms have depended on borrowing costs during the last forty years. The results show that the impact is either zero or slightly negative. Even in the latter case, the results are economically insignificant. Overall,...

This paper analyzes how shareholder wealth, firm characteristics, and public finance would be impacted if tax deductibility of interest expenses were eliminated. We find that shareholder value would decrease by 3.5%. Under the new regime, firms would be smaller and less levered, would have less...

The theoretical model developed in this paper implies that equity value does not always increase with a firm's external growth opportunities, as suggested by the Gordon dividend growth model. There is a positive (negative) relation when the coefficient of constant relative risk aversion of a...

Institutional ownership of U.S. equities increased from 9.4% in 1980 to 42.9% in 2009. This paper analyzes the indirect role of institutional investors in monitoring firm managers and in the process of shareholder wealth maximization. Institutional monitoring reduces the agency problem of free...

This paper examines whether dividend policy impacts firm value and find that paying dividends does improve firm value. Panel data regressions suggest that the dividend premium for firms' equity is 27.9% and the dividend premium for firms' assets is 11.0%. The tests using propensity score...