K.J. Martijn Cremers
Spotlight Research: Institutional Investors, Corporate Governance, and Firm Value
In the corporate governance debate, the short-term versus long term contention has grown into perhaps today’s most controversial topic. In this debate, descriptions of institutional investors tend to present a dichotomic nature. These investors are alternatively portrayed as homogenously short-termist or as consistent “forces for good,” focused on targeting underperforming companies. This Article moves beyond this dichotomy. It shows empirically that aggregate institutional investor behavior presents nuances that depend on a variety of factors, including individual firm characteristics, institutional ownership levels, and institutional propensity toward activism.
Citation: K.J. Martijn Cremers and Simone M. Sepe, Institutional Investors, Corporate Governance, and Firm Value, 41 SEATTLE U. L. REV. 387 (2018).
“Short-Term Investors, Long-Term Investments, and Firm Value: Evidence from Russell 2000 Index Inclusions”,
2019, forthcoming in Management Science (with Ankur Pareek and Zacharias Sautner)
“Challenging the Conventional Wisdom on Active Management: A Review of the Past 20 Years of Academic
Literature on Actively Managed Mutual Funds”, 2019, forthcoming in Financial Analysts Journal (with John
Fulkerson and Timothy Riley)
- "Is the Staggered Board Debate Really Settled?," 2019, University of Pennsylvania Law Review Online, 167(1), 9-45 (with Simone Sepe and Saura Masconale)
- “CEO Pay Redux”, 2017, Texas Law Review 96(2), 205-278 (with Saura Masconale and Simone Sepe)
- Staggered Boards and Long-Term Firm Value, Revisited, forthcoming in the Journal of Financial Economics (with Lubomir Litov and Simone Sepe)