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Cited by 1,258

The DOI matches its Crossref record; 67 of the 67 references it cites were found in a registry or an index.

Blockholder Trading, Market Efficiency, and Managerial Myopia

Open access
EDMANS, ALEX·2009·The Journal of Finance
DOI 10.1111/j.1540-6261.2009.01508.x
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Abstract

This paper analyzes how blockholders can exert governance even if they cannot intervene in a firm's operations. Blockholders have strong incentives to monitor the firm's fundamental value because they can sell their stakes upon negative information. By trading on private information (following the “Wall Street Rule”), they cause prices to reflect fundamental value rather than current earnings. This in turn encourages managers to invest for long‐run growth rather than short‐term profits. Contrary to the view that the U.S.'s liquid markets and transient shareholders exacerbate myopia, I show that they can encourage investment by impounding its effects into prices.

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Metadata

Authors
EDMANS, A.
Venue
The Journal of Finance
Publisher
Wiley
Published
2009-11-25
Volume
64
Issue
6
Pages
2481-2513
ISSN
  • 0022-1082 (ISSN-L)
  • 1540-6261
DOI
10.1111/j.1540-6261.2009.01508.x
OpenAlex
W2141003613
Cited by
1,258
References
67
FWCI
171.10
Type
journal article
Language
en
Open access
green

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CoChat. (2026). Citation check: Blockholder Trading, Market Efficiency, and Managerial Myopia. https://app.cochat.ai/papers/10.1111/j.1540-6261.2009.01508.x
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EDMANS, A. (2009). Blockholder Trading, Market Efficiency, and Managerial Myopia. The Journal of Finance. https://doi.org/10.1111/j.1540-6261.2009.01508.x

Data sources

Bibliographic data: Semantic Scholar, OpenAlex, Crossref.

Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.