A copy of this work was available on the public web and has been preserved in the Wayback Machine. The capture dates from 2013; you can also visit the original URL.
The file type is
We show that higher institutional ownership causes firms to pay more dividends and repurchase more shares. Our identification strategy relies on a discontinuity in ownership based on the annual composition of the Russell 1,000 and 2,000 indices. We also find evidence of a causal effect on proxy voting, corporate investment, R&D, and equity issuance. Overall, results support agency models where concentrated ownership lowers the marginal cost of delegated monitoring. Working Paper.doi:10.2139/ssrn.2102822 fatcat:z2jlsaxd2vfxrfmljioxxbcpqi