This paper contributes to the ongoing debate about whether and how institutional common ownership (ICO) affects firm behavior. Using a sample of equity real estate investment trusts (REITs), which provide significant advantages for isolating a monitoring channel, we find a robust and positive relation between ICO and REIT firm value. The positive relation between ICO and firm value is driven mainly by motivated investors and becomes stronger when we construct our ICO measures using blockholdings. Our difference‐in‐differences analysis, using mergers between institutional investors, suggests a causal relation exists between ICO and firm value. After investigating various channels through which ICO could affect firm behavior, we conclude that asset allocation decisions and performance are the most plausible explanations. Our finding that the monitoring associated with ICO aids managers in their portfolio disposition strategies further supports this conclusion. This enhanced monitoring leads to increased property portfolio returns, as well as more geographic diversification.

中文翻译：

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机构共同所有权和公司价值：房地产投资信托的证据

本文为有关机构共同所有权（ICO）是否以及如何影响公司行为的持续辩论提供了帮助。通过使用股权房地产投资信托（REIT）样本，该样本在隔离监控渠道方面具有显着优势，我们发现ICO与REIT公司价值之间存在稳健而积极的关系。ICO与公司价值之间的积极关系主要是由有动力的投资者驱动的，当我们使用大宗股份来构建ICO措施时，ICO会变得更牢固。我们使用机构投资者之间的合并进行的差异分析表明，ICO与公司价值之间存在因果关系。在调查了ICO可能影响公司行为的各种渠道之后，我们得出结论，资产分配决策和绩效是最合理的解释。我们的发现发现，与ICO相关的监控可以帮助管理人员进行投资组合配置策略，从而进一步支持这一结论。增强的监控导致增加了房地产投资组合的收益，以及更多的地域多元化。