A Survey of Blockholders and Corporate Control

Holderness, Clifford G.

doi:10.2139/ssrn.281952

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A Survey of Blockholders and Corporate Control

Economic Policy Review, Vol. 9, No. 1, April 2003

14 Pages Posted: 7 Sep 2001

See all articles by Clifford G. Holderness

Clifford G. Holderness

Boston College - Department of Finance

Abstract

This paper surveys the empirical literature on large-percentage shareholders in public corporations, focusing on four key issues: the prevalence of blockholders; the motivation for block ownership; the effect of blockholders on major corporate decisions, specifically executive compensation, leverage, and the incidence of takeovers; and the effect of blockholders on firm value. A central finding of this study is that there is little reason for policymakers or small investors to fear large-percentage shareholders in general, especially when the blockholders are active in firm management.

Keywords: Large-block shareholders, corporate control

JEL Classification: G30, G32

Suggested Citation: Suggested Citation

Holderness, Clifford G., A Survey of Blockholders and Corporate Control. Economic Policy Review, Vol. 9, No. 1, April 2003, Available at SSRN: https://ssrn.com/abstract=281952 or http://dx.doi.org/10.2139/ssrn.281952