Estimating the effects of large shareholders using a geographic instrument
By: Bo Becker, Henrik Cronqvist, Rüdiger Fahlenbrach
Contributors: Cronqvist, Henrik; Fahlenbrach, Rüdiger; National Bureau of Economic Research
Series: NBER working paper series -- working paper 17393; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 17393.
Publisher: National Bureau of Economic Research
Published: 2011
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "Large shareholders may play an important role for firm performance and policies, but identifying this empirically presents a challenge due to the endogeneity of ownership structures.  We develop and test an empirical framework which allows us to separate selection from treatment effects of large shareholders.  Individual blockholders tend to hold blocks in public firms located close to where they reside.  Using this empirical observation, we develop an instrument - the density of wealthy individuals near a firm's headquarters - for the presence of a large, non-managerial individual shareholder in a firm.  These shareholders have a large impact on firms, controlling for selection effects"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 11/29/2011.

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