Who owns big business: the rise of passive investors (@uvaCORPNET)

lababouche
Published on Jan 24, 2023
Follow us: https://twitter.com/UvACORPNET

When the financial market crashed, investors fundamentally changed the way they buy stocks. Before, they invested in actively managed funds -- funds that buy shares in companies that they think will outperform the market. After the crisis passively managed funds -- funds that buy shares of all companies of an index -- grew rapidly. In the USA, the three biggest passive investors (Blackrock, Vanguard and State Street) already constitute the single largest shareholder in 40% of all listed firms, and 88% of the S&P500 index.
With the ownership of shares come voting rights, allowing them to have a leading voice in important matters such as executive compensation or on who runs the corporation. What are the consequences of this shift in corporate ownership? This question is central to the scientists of the CORPNET research team (http://corpnet.uva.nl/).

You can read the paper at https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2798653.

This movie was made with the cooperation of Public Cinema: http://www.public-cinema.com/.

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