Public Trading and Private Incentives

By Antoine Faure-Grimaud, Denis Gromb. 2004

274 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/7d13bf9abeeaa1c0e29c8ffe6b3a94bb205fa67b

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Citations in the corpus

Liquidity and Shareholder Activism (2015, background): “Early papers on activism, surveyed by Gillan and Starks (1998) and Karpoff (2001), provide little evidence that activism by institutional investors is able to impact the performance of targeted firms.”
Corporate Governance and Liquidity (2010, unknown): “In contrast, Faure-Grimaud and Gromb (2004) show that information”
The effects of stock liquidity on firm value and corporate governance: Endogeneity and the REIT experiment (2015, background): “Faure-Grimaud and Gromb (2004) suggest that a liquid stock market can generate information about the monitor’s activity and incentivize large shareholders (such as institutional investors) to monitor.”
Motivated monitors: The importance of institutional investors׳ portfolio weights (2015, unknown): “…of the target’s liquidity (measured following Amihud, 2002) is important given the academic debate on whether liquidity strengthens or weakens institutional monitoring (see Kahn and Winton (1998), Maug (1998), Faure-Grimaud and Gromb (2004), and Back, Li, and Ljungqvist (2014) among others).”
Strategic News Releases in Equity Vesting Months (2018, background): “For example, Faure-Grimaud and Gromb (2004) show that a blockholder will base her decision to undertake a costly intervention on whether the benefits of this intervention will be reflected in prices within her investment horizon.”
Incentives to Innovate and the Decision to Go Public or Private (2014, background): “An incomplete list includes Holmström and Tirole (1993), Khanna, Slezak, and Bradley (1994), Dow and Gorton (1997), Faure-Grimaud and Gromb (2004), Almazan, Banerji, and Motta (2008), and Edmans (2009).”
The Bright Side of Financial Derivatives: Options Trading and Firm Innovation (2016, unknown): “Specifically, Holmström and Tirole (1993) and Faure-Grimaud and Gromb (2004) examine the role of price informativeness in disciplining managers and providing incentives to insiders to engage in value-increasing activities.”
The Illiquidity Puzzle: Theory and Evidence from Private Equity (2004, background): “The manager then faces a lemons problem when he has to raise funds for a subsequent fund from outside investors, because the outsiders cannot determine whether the manager is of poor quality or the existing investors were hit by a liquidity shock.”
The Effect of Liquidity on Governance (2011, background): “However, it is interesting to study which results continue to hold when considering all activists, which include non-hedge fund institutions.”