Robinson & William Savitt, Fair Markets and Fair Disclosure: Some Thoughts on the Law and Economics of Blockholder
Disclosure, and the Use and Abuse of Shareholder Power, 3 HARV.
Impact of corporate insider, blockholder
, and institutional equity ownership on firm risk taking.
Along those lines, In re Sanchez Energy reinforces the notion that "a large blockholder
will not be considered a controlling stockholder unless they actually control the board's decision about the challenged transaction.
In this case, the blockholder
variable would be a third manifest variable, along with the number of independent directors and board meetings.
Core, Holthausen, and Larcker (1999) find that CEO compensation level is negatively associated with presence of an external blockholder
who owns at least 5% of the equity.
revising the rules governing blockholder
Where minority shareholders are least protected, ownership concentration of a single blockholder
is negatively related to performance; but the ownership portion of a coalition of the five largest shareholders is positively related to performance.
It also suggests that we should assume in the meantime that the market and blockholder
systems possess equal competitive fitness.
These studies showed that the association between earnings and managerial ownership is negative at higher levels of managerial shareholdings and at blockholder
To test for any influence of ownership structure on charter value, we gather data on inside director ownership and outside blockholder
Following their paper, political connection is a dummy variable that takes the value i if at least one of a firm's top directors (CEO, president, vice president, or secretary) or large shareholders (any blockholder
controlling at least 10 percent of votes) is a member of parliament, a government minister, or closely related to a top politician or party and 0 otherwise.
The index is a figure from 0 to 100 that represents the market value of all the listed firms controlled by an individual blockholder
as a proportion of the total stock market capitalization in a country.