Do voting rights affect institutional investment decisions? Evidence from dual-class firms

Financial Management

Volumn 37, Issue 4, 2008, Pages 713-745

  Li, Kai ^a   Ortiz Molina, Hernán ^a   Zhao, Xinlei ^b  

^a UNIVERSITY OF BRITISH COLUMBIA   (Canada)

^b KENT STATE UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 70350322826     PISSN: 00463892     EISSN: None     Source Type: Journal    
DOI: 10.1111/j.1755-053X.2008.00032.x     Document Type: Article

References (49)

1. Aggarwal, R., L. Klapper, and P.D.Wysocki, 2005, "Portfolio Preferences of Foreign Institutional Investors," Journal of Banking and Finance 29, 2919-2946.
2. Bacon, C.J., M.M. Cornett, and W.N. Davidson, III, 1997, "The Board of Directors and Dual-Class Recapitalizations," Financial Management 26, 5-22.
3. Badrinath, S.G., G.D. Gay, and J. Kale, 1989, "Patterns of Institutional Investment, Prudence, and the anagerial 'Safety-Net' Hypothesis," Journal of Risk and Insurance 56, 605-629.
4. Badrinath, S.G., J.R. Kale, and H.E. Ryan, 1996, "Characteristics of Common Stock Holdings of Insurance ompanies," Journal of Risk and Insurance 63, 49-76.
5. Badrinath, S.G. and S. Wahal, 2002, "Momentum Trading by Institutions," Journal of Finance 57, 2449-
6. Bennet, J.A., R.W. Sias, and L.T. Starks, 2003, "Greener Pastures and the Impact of Dynamic Institutional references," Review of Financial Studies 16, 1203-1238.
7. Binay, M., 2005, "Performance Attribution of US Institutional Investors," Financial Management 34, 127-152.
8. Brickley, J.A., R.C. Lease, and C.W. Smith, Jr., 1988, "Ownership Structure and Voting on Anti-takeover mendments," Journal of Financial Economics 20, 267-291.
9. Böhmer, E., G.C. Sanger, and S.B. Varshney, 1996, "The Effect of Consolidated Control on Firm Performance: he Case of Dual-Class IPOs," inM. Levis, Ed., Empirical Issues in Raising Equity Capital, The etherlands, Elsevier Publishing.
10. Bushee, B.J., M.E. Carter, and J. Gerakos, 2007, "Institutional Investor Preference for Corporate Governance Mechanisms," Wharton School Working Paper.
11. Bushee, B.J. and C.F. Noe, 2000, "Corporate Disclosure Practices, Institutional Investors, and Stock Return Volatility," Journal of Accounting Research 38, 171-202.
12. Carleton,W.T., J.M. Nelson, andM.Weisbach, 1998, "The Influence of Institutions on CorporateGovernance through Private Negotiations: Evidence from TIAA-CREF," Journal of Finance 53, 1335-1362.
13. Chen, X., J. Harford, and K. Li, 2007, "Monitoring: Which Institutions Matter?" Journal of Financial Economics 86, 279-305.
14. Claessens, S., S. Djankov, J.P.H. Fan, and L.H.P. Lang, 2002, "Disentangling the Incentive and Entrenchment Effects of Large Shareholdings," Journal of Finance 57, 2741-2771.
15. Cornett, M.M. and M.R. Vetsuypens, 1989, "Voting Rights and Shareholder Wealth: The Issue of Limited Voting Common Stock," Managerial and Decision Economics 10, 175-188.
16. Coval, J.D. and T.J.Moskowitz, 1999, "Home Bias at Home: Local Equity Preference in Domestic Portfolios," Journal of Finance 54, 2045-2073.
17. Coval, J.D. and T.J. Moskowitz, 2001, "The Geography of Investment: Informed Trading and Asset Prices," Journal of Political Economy 109, 811-841.
18. Dahlquist, M., L. Pinkowitz, R.M. Stulz, and R. Williamson, 2003, "Corporate Governance and the Home Bias," Journal of Financial and Quantitative Analysis 38, 87-110.
19. DeAngelo, H. and L. DeAngelo, 1985, "Managerial Ownership of Voting Rights: A Study of Public Corporations with Dual Classes of Common Stock," Journal of Financial Economics 14, 33-69.
20. Del Guercio,D., 1996, "The Distorting Effect of the Prudent-Man Laws on Institutional Equity Investments," Journal of Financial Economics 40, 31-62.
21. Denis, D.J. and D.K. Denis, 1994, "Majority Owner-Managers and Organizational Efficiency," Journal of Corporate Finance 1, 94-118.
22. Dimitrov, V. and P.C. Jain, 2006, "Recapitalization of One Class of Common Stock into Dual-Class: Growth and Long-Run Stock Returns," Journal of Corporate Finance 12, 342-366.
23. Falkenstein, E.G., 1996, "Preferences for Stock Characteristics as Revealed by Mutual Fund Portfolio Holdings," Journal of Finance 51, 111-136.
24. Fama, E.F. and M.C. Jensen, 1983, "Separation of Ownership and Control," Journal of Law and Economics 26, 301-325.
25. Fama, E. and K. French, 1997, "Industry Costs of Capital," Journal of Financial Economics 43, 153-193.
26. Fama, E. and J. MacBeth, 1973, "Risk, Return, and Equilibrium: Empirical Tests," Journal of Political Economy 81, 607-636.
27. Giannetti, M. and Y. Koskinen, 2008, "Investor Protection, Equity Returns, and Financial Globalization," Stockholm School of Economics Working Paper.
28. Giannetti, M. and A. Simonov, 2006, "Which Investors Fear Expropriation? Evidence from Investors' Portfolio Choices," Journal of Finance 61, 1507-1547.
29. Gompers, P.A., J.L. Ishii, and A. Metrick, 2003, "Corporate Governance and Equity Prices," Quarterly Journal of Economics 118, 107-155.
30. Gompers, P.A., J. Ishii, and A. Metrick, 2007, "Extreme Governance: An Analysis of Dual-Class Firms in the United States," Harvard Business School Working Paper.
31. Gompers, P.A. and A. Metrick, 2001, "Institutional Investors and Equity Prices," Quarterly Journal of Economics 116, 229-259. (Pubitemid 33593855)
32. Grinstein, Y. and R. Michaely, 2005, "Institutional Holdings and Payout Policy," Journal of Finance 60, 1389-1426.
33. Karpoff, J.M., 1998, "The Impact of Shareholder Activism on Target Companies: A Survey of Empirical Findings," University of Washington Working Paper.
34. Kho, B.C., R. Stulz, and F.E. Warnock, 2006, "Financial Globalization, Governance, and the Evolution of the Home Bias," Ohio State University Working Paper.
35. King, M.R. and D. Segal, 2008, "The Long-Term Effects of Cross-Listing, Investor Recognition, and Ownership Structure on Valuation," Review of Financial Studies, forthcoming.
36. Lakonishok, J., A. Shleifer, and R.W. Vishny, 1992, "The Impact of Institutional Trading on Stock Prices," Journal of Financial Economics 32, 23-43.
37. La Porta, R., F. Lopez-de-Silanes, A. Shleifer, and R.W. Vishny, 1997, "Legal Determinants of External Finance," Journal of Finance 52, 1131-1150.
38. Lehn, K., J. Netter, and A. Poulsen, 1990, "Consolidating Corporate Control: Dual-Class Recapitalizations versus Leverage Buyouts," Journal of Financial Economics 27, 557-580.
39. Leuz, C., K.V. Lins, and F.E.Warnock, 2008, "Do Foreigners Invest Less in Poorly Governed Firms?" Review of Financial Studies, forthcoming.
40. Mikkelson,W.H. and M.M. Partch, 1994, "The Consequences of Unbundling Managers' Voting Rights and Equity Claims," Journal of Corporate Finance 1, 175-199.
41. Moyer, C.R., R. Rao, and P.M. Sisneros, 1992, "Substitutes for Voting Rights: Evidence from Dual-Class Recapitalizations," Financial Management 21, 35-47.
42. Newey, W. and K. West, 1987, "A Simple, Positive Semi-Definite, Heteroscedastic and Autocorrelation Consistent Covariance Matrix," Econometrica 55, 703-708.
43. Nofsinger, J.R. and R.W. Sias, 1999, "Herding and Feedback Trading by Institutional and Individual Investors," Journal of Finance 54, 2263-2295.
44. Partch, M.M., 1987, "The Creation of a Class of Limited Voting Common Stock and Shareholder Wealth," Journal of Financial Economics 18, 313-339.
45. Rogers, W., 1993, "Regression Standard Errors in Clustered Samples," Stata Technical Bulletin 13, 19-23.
46. Smart, S.B. and C.J. Zutter, 2003, "Control as a Motivation for Underpricing: A Comparison of Dual- and Single-Class IPOs," Journal of Financial Economics 69, 85-110.
47. Smith, M.P., 1996, "Shareholder Activism by Institutional Investors: Evidence from CalPERS," Journal of Finance 51, 227-252.
48. Woidtke, T., 2002, "Agents Watching Agents? Evidence from Pension Fund Ownership and Firm Value," Journal of Financial Economics 63, 99-132.
49. Zingales, L., 1995, "What Determines the Value of Corporate Votes?" Quarterly Journal of Economics 105, 1047-1077.