Events, Open Seminars, Uncategorized

What are the consequences of the growth of quasi-indexed investments for corporate governance and markets?

Martin C. Schmalz
Assistant Professor Finance Area, Stephen M. Ross School of Business University of Michigan

Publicly traded firms are increasingly owned and controlled by a small set of large diversified mutual fund families, leading to a shift of power from individual owners, and from more focused and concentrated owners. One consequence is an increased number of natural competitors that are “commonly owned” (and partially controlled) by a small set of identical investors, which reduces firm’s incentive to compete aggressively against each other. Common ownership has a robust link to lessened competition in various industries, can potentially explain various macro trends (such as low investment and growth despite high profit margins, and the rise of inequality) and has thus become a “hot” topic among antitrust regulators, researchers, and practitioners alike. The interaction between various types of shareholders — e.g. activists and quasi-indexers — is an exciting topic of ongoing research.

Welcome to an interesting seminar!

We serve an light breakfast from 07:45 and the seminar starts at 8:00 and ends at 9:15.

Please register by e-mailing to event@houseoffinance.se not later than May 30.

 

 

DETAILS

START TIME: Thu, 8 June 2017 8:00 am

END TIME: Thu, 8 June 2017 9:15 am

LOCATION: Swedish House of Finance, Drottninggatan 98, 4 floor, 2 stairs, Stockholm