While financial institutions' aggregate investments have grown substantially across world equity markets, the size of their individual shareholdings, and ultimately their incentive to monitor, can be limited by the free-rider problem, investment regulations and a preference for diversification...

While financial institutions' aggregate investments have grown substantially worldwide, the size of their individual shareholdings, and ultimately their incentive to monitor, may be limited by the free-rider problem, regulations, and a preference for diversification and liquidity. We compare...

Theory suggests that controlling shareholders can influence firm value through both shared benefits creation and private benefits consumption. Using negotiated control-block transfers from 31 countries, we look beyond ownership concentration and investigate how controlling shareholder...