Large Shareholders and Corporate Policies

Posted: 28 Sep 2009

See all articles by Henrik Cronqvist

Henrik Cronqvist

University of Miami - Department of Finance

Rüdiger Fahlenbrach

Ecole Polytechnique Fédérale de Lausanne; Swiss Finance Institute; European Corporate Governance Institute (ECGI)

Multiple version iconThere are 2 versions of this paper

Date Written: October 2009


We analyze the effects of heterogeneity across large shareholders, using a new blockholder-firm panel dataset in which we can track all unique blockholders among large public firms in the United States. We find statistically significant and economically important blockholder fixed effects in investment, financial, and executive compensation policies. We also find blockholder fixed effects in firm performance measures, and differences in corporate policies are systematically related to differences in firm performance. We study potential sources of the heterogeneity and find that blockholders with a larger block size, board membership, direct management involvement, or with a single decision maker are associated with larger effects on corporate policies and firm performance.

Keywords: G31, G32, G34, G35

Suggested Citation

Cronqvist, Henrik and Fahlenbrach, Rüdiger, Large Shareholders and Corporate Policies (October 2009). The Review of Financial Studies, Vol. 22, Issue 10, pp. 3941-3976, 2009, Available at SSRN: or

Henrik Cronqvist (Contact Author)

University of Miami - Department of Finance ( email )

5250 University Drive
220 Jenkins Building
Coral Gables, FL 33146
United States
(305) 284-9482 (Phone)


Rüdiger Fahlenbrach

Ecole Polytechnique Fédérale de Lausanne ( email )

Quartier UNIL-Dorigny
Extranef 211
1015 Lausanne, CH-1015
++41-21-693-0098 (Phone)
++41-21-693-3010 (Fax)

HOME PAGE: http://

Swiss Finance Institute

c/o University of Geneva
40, Bd du Pont-d'Arve
CH-1211 Geneva 4

European Corporate Governance Institute (ECGI) ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
PlumX Metrics