Who's paying attention? Measuring common ownership and its impact on managerial incentives
| Autor: | Erik Gilje, Doron Levit, Todd A. Gormley |
|---|---|
| Rok vydání: | 2020 |
| Předmět: |
040101 forestry
Economics and Econometrics 050208 finance business.industry Strategy and Management 05 social sciences Common ownership 04 agricultural and veterinary sciences Investment management Microeconomics Incentive Accounting 0502 economics and business 0401 agriculture forestry and fisheries Portfolio Business Finance Externality |
| Zdroj: | Journal of Financial Economics. 137:152-178 |
| ISSN: | 0304-405X |
| Popis: | We derive a measure that captures the extent to which common ownership shifts managers’ incentives to internalize externalities. A key feature of the measure is that it allows for the possibility that not all investors are attentive to whether a manager's actions benefit the investor's overall portfolio. Empirically, we show that potential drivers of common ownership, including mergers in the asset management industry and, under certain circumstances, even indexing, could diminish managerial motives to internalize externalities. Our findings illustrate the importance of accounting for investor inattention when analyzing whether the growth of common ownership affects managerial incentives. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
|
Full Text from ScienceDirect