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FIRN Women Virtual Seminar - Ekaterina Volkova, Melb

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FIRN Women is hosting online seminars presented by female ECRs in a monthly seminar series. The seminars will be via zoom and will be about an hour long, comprising presentation followed by moderated Q&A.

FIRN Women invites you to a virtual seminar Is Blockholder Diversity Detrimental? presented by Ekaterina Volkova, University of Melbourne

Is Blockholder Diversity Detrimental?
Miriam Schwartz-Ziv and Ekaterina Volkova

Abstract: We find that block diversity, i.e., having multiple block types, is detrimental to firm performance in three settings which experience exogenous variation to (the revelation of) changes in block diversity. In the first setting, we find that the market response to an increase in block diversity revealed around an exogenously pre-determined date is negative. In the second setting we find that following an individuals’ death/ retirement leading to a decrease in block diversity, firm performance improves. The third setting focuses on the 2003-4 mutual fund scandal which led to the dissolution of blocks thereby decreasing block diversity, and was followed by an improvement of firm performance. Additionally, we show that firms held by heterogeneous blockholders consistently perform worse than firms held by homogeneous blockholders. These patterns can be explained by our findings that firms with a heterogeneous blockholder base are prone to experience disagreement: in such firms, we uniquely demonstrate that shareholders are more likely to sue the firm, and disagreement is more prevalent at shareholder meetings.

Moderated by: Jacquie Humphrey, UQ

All FIRN members are welcome to this event. Please register your interest and you will be sent an email the day before with the Zoom code and password.

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