We examine whether business groups’ influence on cash holdings depends on ownership. Group affiliation can increase firms’ agency costs or benefit firms by providing an internal capital market, especially in transition economies characterized by weak investor protection and difficult...

We show that passive ownership can reduce agency costs and affect corporate governance using novel data of a central bank’s ETF purchasing program as a source of a cross-sectional variation of passive ownership. The empirical findings document that firms with high passive ownership are more...