Quantifying Institutional Block Ownership, Domestic and Foreign, at Publicly Traded U.S. Corporations

Harvard Law School John M. Olin Center Discussion Paper No. 888

15 Pages Posted: 29 Oct 2016 Last revised: 20 Dec 2016

See all articles by John C. Coates, IV

John C. Coates, IV

Harvard Law School

Ronald Fein

Free Speech For People

Kevin Crenny

Harvard University, Law School, Students

Li Wei Vivian Dong

Harvard University, Law School, Students

Date Written: October 1, 2016

Abstract

This short technical report provides an empirical analysis of the level of institutional block ownership overall, and of foreign block ownership, at a broad set of publicly traded corporations. Disclosed institutional blockholders of every company in the Standard & Poor’s 500 index are analyzed, and the distribution of blockholders is presented. Blockholders are identified as domestic or foreign entities, and whether they were majority owned or controlled by foreign entities. Roughly one in three companies in the S&P 500 has one or more block holders with 20 % ownership, and one in eleven (9%) has one or more foreign institutions each owning five percent or more blocks of stock. The descriptive data reported here may assist lawmakers, analysts, and investors in assessing the effects of globalization of capital markets and the interaction of country and governance risk, and in developing policies. Among other things, these data may inform debates on the degree to which domestic political spending by U.S. corporations conveys any potential for foreign influence through governance, and the likely costs and benefits of disclosure laws regarding such influence.

Keywords: Ownership, institutional ownership, foreign ownership, corporate governance, blockholders

JEL Classification: F38, F65, G32, G34, G38, K22, K23

Suggested Citation

Coates, John C. and Fein, Ronald and Crenny, Kevin and Dong, Li Wei Vivian, Quantifying Institutional Block Ownership, Domestic and Foreign, at Publicly Traded U.S. Corporations (October 1, 2016). Harvard Law School John M. Olin Center Discussion Paper No. 888. Available at SSRN: https://ssrn.com/abstract=2857957 or http://dx.doi.org/10.2139/ssrn.2857957

John C. Coates (Contact Author)

Harvard Law School ( email )

1575 Massachusetts
Hauser 406
Cambridge, MA 02138
United States

Ronald Fein

Free Speech For People ( email )

505 West 38th Street
Unit A4
Austin, TX 78705
United States

HOME PAGE: http://www.freespeechforpeople.org

Kevin Crenny

Harvard University, Law School, Students ( email )

1563 Massachusetts Avenue
Cambridge, MA 02138
United States

Li Wei Vivian Dong

Harvard University, Law School, Students ( email )

1563 Massachusetts Avenue
Cambridge, MA 02138
United States

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