Blockholder Heterogeneity, Multiple Blocks, and the Dance between Blockholders

Charles Hadlock, Miriam Schwartz-Ziv*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

12 Scopus citations


We study blockholder presence in a large panel and document substantial heterogeneity in holding periods, position sizes, and positions taken across blockholder types. Nonfinancial blocks are more likely to be observed in smaller, riskier, younger, and less-liquid firms. These patterns are either not evident or reversed for financial blocks. For all but small financial blocks, we detect significant negative interdependence in blockholder investment decisions, with the presence of one blockholder crowding out others, a behavior that appears causal. Small financial blocks often coexist in the same firm, an outcome that appears to reflect correlated investment styles. Received April 30, 2018; editorial decision November 23, 2018 by Editor David Denis.

Original languageAmerican English
Pages (from-to)4196-4227
Number of pages32
JournalReview of Financial Studies
Issue number11
StatePublished - 1 Nov 2019

Bibliographical note

Funding Information:
We thank Damien Brooks for superb research assistance and Nicole Boyson, Elizabeth Cooperman, David Denis (the editor), Alex Edmans, Radha Gopalan, Doron Levit, Sebastien Michenaud, Marco Pagano, Lea Stern, and Francisco Urzúa I.; an anonymous referee; and seminar participants at Hebrew University of Jerusalem, IDC Herzliya, Illinois, Northeastern, Tel Aviv University, Tennessee, Texas, Toronto, Washington University in St. Louis, Wayne State, the 2015 Drexel Conference on Corporate Governance, the 2016 International Risk Management Conference, the 2017 Midwest Finance Association meetings, the 2017 European Finance Association meetings, the 2017 FMA meetings, the 2018 Colorado Front Range conference, and the 2018 CEIBS conference for helpful comments. M. S.-Z. thanks Harvard University for data access as a visiting scholar, and C. J. H. acknowledges the research support of the University of Chicago as a visiting professor. All errors remain our own. Send correspondence to Miriam Schwartz-Ziv, Finance department, Hebrew University, Mount Scopus, Jerusalem, 91905, Israel; telephone: +972-2-588-3235. Email:

Publisher Copyright:
© 2019 The Author(s).


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