Institutional cross-owners, specifically institutional investors with significant stakes in multiple firms in the same industry, are becoming increasingly common in the United States. In this paper, we investigate and find that the presence of institutional cross-owners facilitates a firm's financing of its investment opportunities, consistent with institutional cross-owners reducing the adverse selection concerns of those who provide capital for the investment opportunities. We then examine the conditions under which the presence of institutional cross-owners is likely to more significantly reduce adverse selection and thereby have even more of a positive effect on the financing of investment opportunities. We document that relative to transient institutional cross-owners, dedicated institutional cross-owners facilitate more financing of investment opportunities. We also find that institutional cross-owners facilitate the financing of investment opportunities even more for firms with greater dependence on external financing, those with an opaque financial reporting environment, and those with more product market competition. Our paper offers novel insight into how a firm can benefit from the presence of institutional cross-owners.

机构交叉所有者，特别是在同一行业的多家公司中持有大量股份的机构投资者，在美国正变得越来越普遍。在本文中，我们调查并发现机构交叉所有者的存在促进了公司对其投资机会的融资，与机构交叉所有者一致，减少了为投资机会提供资金的人的逆向选择担忧。然后，我们研究了在哪些条件下机构交叉所有者的存在可能更显着地减少逆向选择，从而对投资机会的融资产生更大的积极影响。我们记录了相对于短暂的机构交叉所有者，专门的机构交叉所有者促进了更多的投资机会融资。我们还发现，机构交叉所有者为更多依赖外部融资的公司、财务报告环境不透明的公司以及产品市场竞争激烈的公司提供了更多的投资机会融资。我们的论文提供了关于公司如何从机构交叉所有者的存在中受益的新颖见解。