Portfolio concentration and firm performance

Benjamin Maury, Anders Ekholm

Forskningsoutput: TidskriftsbidragArtikelVetenskapligPeer review

11 Citeringar (Scopus)

Sammanfattning

This paper investigates the relation between shareholders’ portfolio concentration and firm performance. Using data on more than 1.3 million unique shareholders, we create an index that measures how concentrated shareholder portfolios are in each firm. We posit that portfolio concentration will affect incentives when shareholders are resource constrained. We find that average shareholder portfolio concentration is significantly positively related to future operational performance and valuation. We also find that portfolio concentration is positively correlated with abnormal stock returns. Our findings suggest that shareholders with concentrated portfolios are more informed and play a governance role through the stock market.
OriginalspråkEngelska
Referentgranskad vetenskaplig tidskriftJournal of Financial and Quantitative Analysis
Volym49
Utgåva4
Sidor (från-till)903-931
Antal sidor29
ISSN0022-1090
DOI
StatusPublicerad - 01.08.2014
MoE-publikationstypA1 Originalartikel i en vetenskaplig tidskrift

Nyckelord

  • 511 Nationalekonomi
  • 512 Företagsekonomi
  • portfolio concentration, ownership concentration, governance through the stock market, profitability, valuation, stock returns
  • KOTA2014

Fingeravtryck Fördjupa i forskningsämnen för ”Portfolio concentration and firm performance”. Tillsammans bildar de ett unikt fingeravtryck.

Citera det här