Manager incentives are viewed as being better aligned with those of shareholders when they have an ownership stake in the firms they manage. However, manager ownership can exacerbate agency problems by better enabling managers to pass shareholder resolutions. We outline a model of strategic...

I examine the effect of blockholder board representation on a borrower's terms of debt. I document an inverse relationship with both the variable interest rate and count of loan covenants, consistent with debtholders viewing blockholder-directors favorably. Despite being an inherently active...

I use both theoretical models and empirical methods to examine how founder-CEOs sell their remaining ownership shares. I find that founder-CEOs of high-growth firms and those with high managerial ability are more likely to sell remaining ownership shares gradually rather than suddenly. Moreover,...