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The Effect of Passive Ownership Concentration on Voluntary Disclosure

Ge, X., Bilinski, P. ORCID: 0000-0002-0499-6429 and Kraft, A. ORCID: 0000-0003-1641-1982 (2021). The Effect of Passive Ownership Concentration on Voluntary Disclosure. The European Accounting Review,


We study how institutional blockholdings affect firm voluntary disclosure. We document that concentrated institutional ownership reduces firms’ voluntary disclosure measured by the propensity to issue management forecasts, comprehensiveness of guidance, propensity to engage in conference calls, and the number of 8-K filings. We identify two channels through which blockholders affect firms’ voluntary disclosure. First, blockholders have easier access to managers and substitute private for public information acquisition. Second, a higher proportion of non-monitoring blockholders with low demand for voluntary disclosure, such as passive blockholders, reduces the firm’s incentive to provide voluntary disclosure. The results are robust to endogeneity and reverse causality concerns. Our study identifies an important effect that concentrated ownership has on firm corporate disclosure.

Publication Type: Article
Additional Information: This is an Accepted Manuscript version of the following article, accepted for publication in European Accounting Review. Ge, X., Bilinski, P. and Kraft, A. (2021). The Effect of Passive Ownership Concentration on Voluntary Disclosure. The European Accounting Review. It is deposited under the terms of the Creative Commons Attribution-NonCommercial License (, which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is properly cited.
Publisher Keywords: passive ownership, institutional investors, blockholder, voluntary disclosure
Subjects: H Social Sciences > HG Finance
Departments: Bayes Business School > Finance
Date available in CRO: 31 Aug 2021 10:56
Date deposited: 31 August 2021
Date of acceptance: 30 August 2021
Date of first online publication: 2 March 2022
[img] Text - Accepted Version
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Available under License Creative Commons Attribution Non-commercial.

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