Governance Under Common Ownership
Conventional wisdom is that diversification weakens governance by spreading an investor too thinly. We show that, when an investor owns multiple firms...
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The Conundrum of Common Ownership
The common ownership debate has become one of the most contentious issues in corporate law today. This debate is a by-product of major...
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Equal Ownership
Market concentration and weak competition do not just lead to lower efficiency, but also result in corporate profits flowing primarily to wealthy...
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Endogenous Choice of Stakes Under Common Ownership
We present a simple model of common ownership in which an investor chooses its stake in competing firms in light of the effects on firm behavior and firm...
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Irrelevance of Governance Structure
Does corporate governance structure matter for firm value? We develop a model in which the allocation of control rights between shareholders and...
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Ownership Diversification and Product Market Pricing Incentives
We link investor ownership to profit loads on rival firms by the managers of a firm. We propose a theory model in which we distinguish between passive and...
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Does the Potential to Merge Reduce Competition?
We study anti-competitive mergers in a dynamic model with noisy collusion. At each instant, firms either privately choose output levels or merge, which...
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Common Ownership and The Decline of the American Worker
The last forty years have seen two major economic trends: Wages have stalled despite rising productivity, and institutional investors have replaced...
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The Strategies of Anticompetitive Common Ownership
Scholars and antitrust enforcers have raised concerns about anticompetitive effects that may arise when institutional investors hold substantial...
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Supply Chain Risk: Changes in Supplier Composition and Vertical Integration
Using textual analysis of earnings conference calls, we quantify firms’ supply chain risk and its sources. Our proxy for supply chain risk exhibits...
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Are Investors Aware of Ownership Connections?
We examine the market reactions to earnings announcements within a parent-subsidiary ownership structure. We find that the parents’ investors...
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Does Common Ownership Really Increase Firm Coordination?
A growing number of studies suggest that common ownership caused cooperation among firms to increase and competition to decrease. We take a closer look...
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