We develop a theoretical model to study investors' trading behavior in the presence of large shareholders' influence on … a firm's equity. We show that, for a good stock, large shareholders may invest a higher proportion of their wealth in … of board structure on the firm's equity when the firm possesses several large influential shareholders: (i) the large …

's debtholders to bail out the firm as bankruptcy looms. Because of this implicit guarantee, firm shareholders have an incentive to …

, has in general a positive price impact and increases shareholders' wealth, if the existence of non-smart investors and … limits of arbitrage leads to market inefficiency. Shareholders gain more from a share repurchases instead of paying a …