The Social Cost of Investor Distraction: Evidence from Institutional Cross-Blockholding
The world is becoming richer. Not in resources but in the stimuli it offers to individuals and organizations. Consequently, we are living in the attention economy—that is, attention is becoming increasingly scarce, and we ought to preserve it, lest we distract ourselves away from events that truly matter. Our forthcoming research article in PLOS ONE […]
Vivek Astvansh is an Associate Professor of Quantitative Marketing and Analytics at McGill University’s Desautels Faculty of Management. Tao Chen is an Associate Professor in Finance at Nanyang Business School, Singapore. Jimmy “Chengyuan” Qu earned his Ph.D. in Finance from Nanyang Business School, Singapore. This post is based on their recent paper. Related research from the Program on Corporate Governance includes Index Funds and the Future of Corporate Governance: Theory, Evidence and Policy (discussed on the Forum here) by Lucian A. Bebchuk and Scott Hirst; New Evidence, Proofs, and Legal Theories on Horizontal Shareholding (discussed on the Forum here); and Horizontal Shareholding (discussed on the Forum here) both by Einer Elhauge.
The world is becoming richer. Not in resources but in the stimuli it offers to individuals and organizations. Consequently, we are living in the attention economy—that is, attention is becoming increasingly scarce, and we ought to preserve it, lest we distract ourselves away from events that truly matter.
