Owner-Managers’ Equity Portfolio Choice
2006 (English)In: Corporate Ownership & Control, ISSN 1727-9232, Vol. 4, no 1, 37-48 p.Article in journal (Refereed) Published
Some studies have shown that managers concentrate large fractions of their wealth in the equity of their own firm. In this paper we use a unique dataset and investigate how Swedish owner-managers invest remaining wealth conditional on a major investment in their own firm. We find no[JR1] evidence that owner-managers seek diversification benefits when they invest remaining wealth. Instead some owner-managers invest remaining wealth in the industry where they already have a substantial capital investment. We conclude that some owner-managers seek to exploit their industry-specific superior information when they invest wealth not tied up in their own firms.
Place, publisher, year, edition, pages
2006. Vol. 4, no 1, 37-48 p.
Portfolio choice, Under-diversification, Owner-managers
IdentifiersURN: urn:nbn:se:kth:diva-122243OAI: oai:DiVA.org:kth-122243DiVA: diva2:621458
QC 201305152013-05-142013-05-142013-05-15Bibliographically approved