Large Blocks of Stock: Prevalence, Size, and Measurement / Jennifer Dlugosz, Rudiger Fahlenbrach, Paul Gompers, Andrew Metrick.

Format:

Book

Author/Creator:

Dlugosz, Jennifer.

Contributor:

National Bureau of Economic Research.

Fahlenbrach, Rudiger.

Gompers, Paul.

Metrick, Andrew.

Series:

Working Paper Series (National Bureau of Economic Research) no. w10671.

NBER working paper series no. w10671

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Large Blocks of Stock

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2004.

Summary:

Large blocks of stock play an important role in many studies of corporate governance and finance. Despite this important role, there is no standardized data set for these blocks, and the best available data source, Compact Disclosure, has many mistakes and biases. In this paper, we document these mistakes and show how to fix them. The mistakes and bias tend to increase with the level of reported blockholdings: in firms where Compact Disclosure reports that aggregate blockholdings are greater than 50 percent, these aggregate holdings are incorrect more than half the time and average holdings for these incorrect firms are overstated by almost 30 percentage points. We also demonstrate that our fixes are economically and statistically significant in an analysis of the relationship between firm value and outside blockholders.

Notes:

Print version record

August 2004.