Please use this identifier to cite or link to this item:
https://hdl.handle.net/20.500.12202/9919| Title: | Large investors’ portfolios and firm value |
| Authors: | Ravid, S. Abraham Sekerci, Naciye 0000-0002-5557-789X |
| Keywords: | Stock importance Portfolio composition Blockholders Dual-class shares |
| Issue Date: | 2020 |
| Publisher: | Elsevier B.V. |
| Citation: | Sekerci, N. & Ravid, S.A. (2020). Large investors’ portfolios and firm value. Journal of Corporate Finance, 41, 101404. |
| Series/Report no.: | Journal of Corporate Finance;41 |
| Abstract: | We analyze new Swedish data on the portfolio holdings of large blockholders and find that firm value increases with the weight of a stock in a large blockholder's portfolio. In our sample, this weight may be greater than 50%. We are the first to show that this value premium is correlated with portfolio weights for any large blockholders, not just institutions. We find some evidence that indicates that “stock importance” (high portfolio weight) can mitigate the negative effects of a dual-class structure on firm value. Further, it does not seem that a large blockholder's tenure as a CEO or as a board chairman affects this value premium. We conduct a variety of tests to rule out endogeneity and reverse causality. |
| Description: | Scholarly article / Open access |
| URI: | https://hdl.handle.net/20.500.12202/9919 |
| ISSN: | 0929-1199 |
| Appears in Collections: | Sy Syms School of Business (SSSB) -- Faculty Publications |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| Ravid 2020 OA Large investors' portfolios.pdf | 297.32 kB | Adobe PDF |  View/Open |
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