Canadian National (CN) records, 1974-1989.

Canadian National Railway Company (CN) was incorporated in 1919 as a Crown Corporation. The company was formed during the period after World War I and integrated two of the country’s largest railroads, Canadian Northern and Grand Trunk. CN is the largest rail network in Canada and the only transcontinental network in North America. As the use of railways declined, CN diversified its activities during the 1970s, becoming involved in telecommunications , hotels and oil exploration. The next decade saw a period of financial stability, however, the 1990s were a period of decreased profitability. As part of a restructuring to alleviate the company’s financial difficulties , it was privatized in 1995.

Liquidity, institutional ownership and regulation fair disclosure

There is a body of academic literature addressing two issues of importance for leveling the playing field for all classes of investors: 1) the impact of institutional investors on liquidity; and 2) the impact of Regulation Fair Disclosure on institutional investors and liquidity. Our study addresses both issues with the purpose of attaining a better understanding and explanation of this relationship. We classify institutional ownership according to Bushee's (1998, 2001) methodology; transient institutions, dedicated institutions and quasi-indexers. Our results indicate that while transient institutions and quasi-indexers have a positive impact on liquidity, dedicated institutional ownership is negatively associated with liquidity. This result is consistent with prior theoretical studies. We also find that the effectiveness ofthe Regulation Fair Disclosure in improving liquidity is limited to firms with higher transient institutional ownership, whereas quasi-indexed institutions have not been significantly affected by the regulations. In fact, the liquidity of firms is lower for firms with higher dedicated institutional holdings, which is evidence of the "chilling effect".