Abstract

http://ssrn.com/abstract=2125593
 
 

References (30)



 


 



Institutional Investors as Blockholders


Aviv Pichhadze


affiliation not provided to SSRN

2012

In P. M. Vasudev and S. Watson (Eds.), Corporate Governance after the Financial Crisis: 145-159, Cheltenham, UK; Northampton, MA, USA: Edward Elgar

Abstract:     
Pichhadze (2010) introduced the Market Oriented Blockholder Model (MOBM) as properly describing the ownership pattern in the American equity markets. Under the model, the emerging blockholder in the American equity markets is the institutional investor (II). This poses a challenge to the shareholder primacy literature, which argues that IIs (i) have interests that coincide with the interests of the shareholder body in the public firm, (ii) promote dispersed ownership, and (iii) crusade shareholder interests domestically and internationally. I show that (i) the position of IIs as blockholders creates a paradox for both the literature and the law, (ii) IIs have interests that do not coincide with those of other shareholders, and (iii) failure to recognize these observation vis-à-vis IIs or the MOBM may result in the introduction of a systemic risk into the financial system.

Number of Pages in PDF File: 15

Keywords: Corporate Governance, Ownership, Institutional Investors, Blockholders, Regulation, Capital Markets

JEL Classification: K22, G23, G32, G34, G38

Accepted Paper Series





Download This Paper

Date posted: August 7, 2012  

Suggested Citation

Pichhadze, Aviv, Institutional Investors as Blockholders (2012). In P. M. Vasudev and S. Watson (Eds.), Corporate Governance after the Financial Crisis: 145-159, Cheltenham, UK; Northampton, MA, USA: Edward Elgar. Available at SSRN: http://ssrn.com/abstract=2125593

Contact Information

Aviv Pichhadze (Contact Author)
affiliation not provided to SSRN
Feedback to SSRN


Paper statistics
Abstract Views: 460
Downloads: 161
Download Rank: 23,723
References:  30

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo1 in 0.282 seconds