Long-term index fund ownership and stock returns

• Main Authors: BOEHMER, Ekkehart, SONG, Wanshan, TIWARI, Ashish, ZHANG, Zhe
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2019
• Subjects: Finance; Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/6214; https://ink.library.smu.edu.sg/context/lkcsb_research/article/7213/viewcontent/Long_term_Index_Fund_Ownership_and_Stock_Returns__19.pdf
• Institution: Singapore Management University

We examine the implications of stock ownership by index funds for shareholder value. Consistent with recent findings that stock ownership by passive funds contributes to improved governance, we document a strong positive relation between the duration of passive fund holdings and subsequent stock per...