Marc Steffen Rapp

• Corporate activities are inherently risky but also difficult to monitor. Against this background, we examine the impact of ownership concentration and legal shareholder rights protection on corporate iestments in emerging markets. Based on a comprehensive sample of publicly listed firms from 24 countries, we find that intensity is lower in firms with (strategic) block ownership, and this effect is more pronounced in countries with stronger shareholder rights protection. This suggests that, similar to the situation in developed economies, dispersed ownership, which allows shareholders to diversify their iestment risks, is beneficial for corporate and that this effect is intensified by more developed institutions.