Owner-managers' equity portfolio choice
2006 (English)In: Corporate Ownership & Control, ISSN 1727-9232, E-ISSN 1810-3057, 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 oftheir own firm. In this paper we use a unique dataset and investigate how Swedish owner-managersinvest remaining wealth conditional on a major investment in their own firm. We find no evidencethat owner-managers seek diversification benefits when they invest remaining wealth. Instead someowner-managers invest remaining wealth in the industry where they already have a substantialcapital investment. We conclude that some owner-managers seek to exploit their industry-specificsuperior 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
Research subject Business Studies
IdentifiersURN: urn:nbn:se:uu:diva-288391OAI: oai:DiVA.org:uu-288391DiVA: diva2:924031