Lins (2003) concludes that non-management blockholders
have a positive impact on firm valuation, while Bonilla, Sepulveda and Carvajal (2010) find family firms to perform better than non-family firms.
The controlling family generally serves as a more effective monitor than other blockholders
due to the linkage of firm performance and family wealth.
And if timely and reliable disclosures constrain the ability of blockholders
to secure such private benefits, one expects a negative relation between blockholders
and information transparency.
Governance through trading and intervention: A theory of multiple blockholders
The allocation of risk between owners and stakeholders is largely determined by the capital ownership structure, and this because blockholders
(ie, large shareholders with at least 5% of shares) and minority shareholders may have opposed risk preferences.
The classical work by Jensen and Meckling (1976) and Shliefer and Vishny (1986) proposes the "active monitoring hypothesis" stating that external blockholders
can reduce the managerial opportunism caused by the principal-agent relation.
431, 444 (2008) (finding that family firms are more profitable than widely held firms and companies with other types of blockholders
when the founding family is still active either on the executive or the supervisory board); Danny Miller et al.
Using their prospectuses, we retrieved the IPO date, the subscription price, the number of shares on sale in the IPO, the number of shares issued in and outstanding after the IPO, the IPO allocation mechanism, the underwriters' identity, the involvement of venture capitalists, and the percentage of shares held by the managers, members of their families, and blockholders
before and after the IPO.
controlled, and these blockholders
support management, institutional
192) Thus, the Williams Act reflects a deliberate decision by Congress to balance the interests of outside blockholders
and incumbent managers.
There are 19 articles: history of American corporate governance; blockholders
and corporate governance; corporate takeovers and economic efficiency; payout policy; corporate liquidity management; corporate pension plans; bank capital and financial stability; contingent capital instruments for large financial institutions; counterparty risk; the industrial organization of the US residential mortgage market; investor flows to asset managers; exchange-traded funds; stock prices and earnings; information transmission in finance; insider trading controversies; security market manipulation; financialization of commodity markets; forward rate curve smoothing; optimal exercise for derivative securities.
Since a lower consideration is offered for the controlling share block, blockholders
will presumably less willing to sell their share blocks, which may hinder the strengthening of takeover activity.