Portfolio concentration and firm performance

Benjamin Maury; Anders Ekholm

doi:10.1017/S0022109014000635

Portfolio concentration and firm performance

Benjamin Maury, Anders Ekholm

Finansiell ekonomi, Helsingfors

Forskningsoutput: Tidskriftsbidrag › Artikel › Vetenskaplig › Peer review

22 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.

Originalspråk	Engelska
Referentgranskad vetenskaplig tidskrift	Journal of Financial and Quantitative Analysis
Volym	49
Nummer	4
Sidor (från-till)	903-931
Antal sidor	29
ISSN	0022-1090
DOI	https://doi.org/10.1017/S0022109014000635
Status	Publicerad - 01.08.2014
MoE-publikationstyp	A1 Originalartikel i en vetenskaplig tidskrift

Nyckelord

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

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10.1017/S0022109014000635

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Fulltext

Shareholder Activity and Corporate Performance
Maury, B., Ekholm, A., Liljeblom, E. & Löflund, A.
01.01.2007 → 28.02.2013
Projekt: Externt finansierat projekt

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Portfolio concentration and firm performance

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Shareholder Activity and Corporate Performance

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