Within a broad sample of US manufacturing firms, we find that, controlling for investment opportunities and financial constraints, increased governance quality is associated with higher levels of investment. Increased governance quality is also associated with greater responsiveness of...

We uncover a positive relationship between firms' corporate governance quality, as measured by the degree of managerial entrenchment, and the quality of their real investment decisions. Firms whose managers are less entrenched invest more, invest more in line with their investment opportunities...

To date little is known about how long equity ownership lasts, what determines its length, and whether ownership duration is related to firm performance. Using a unique time series of equity holdings over eleven years, we find that on average the firm's largest owner stays less than three years...