This paper evaluates the effect of shareholder passiveness on the market for corporate control. We find that firms with more passive shareholders (lower ownership per non-institutional shareholder) are less likely to be takeover targets, less likely to be acquired and command higher premiums....

1 Introduction: Corporate Ownership -- Part I Hardware: A Value Creation Framework -- 2 The Primacy of an Owner’s Mission -- 3 The Board of Directors: Governing the Mission -- 4 The CEO and the Executive Team: Responsible for Executing the Mission -- 5 Goals, Strategies, and Fundamentals -- 6...