Large Shareholder Diversification and Corporate Risk-Taking

• 成果类型: Article
• 署名作者: Faccio, Mara; Marchica, Maria-Teresa; Mura, Roberto
• 署名单位: University of Manchester; Purdue University System; Purdue University
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhr065
• 发表日期: 2011
• 页码: 3601
• 关键词: managerial incentives; business groups; OWNERSHIP; INVESTMENT; governance; PRIVATE; finance; WEALTH; FAMILY; firm

摘要

Using new data for the universe of firms covered in Amadeus, we reconstruct the portfolios of shareholders who hold equity stakes in private- and publicly traded European firms. We find great heterogeneity in the degree of portfolio diversification across large shareholders. Exploiting this heterogeneity, we document that firms controlled by diversified large shareholders undertake riskier investments than firms controlled by nondiversified large shareholders. The impact of large shareholder diversification on corporate risk-taking is both economically and statistically significant. Our results have important implications at the policy level because they identify one channel through which policy changes can improve economic welfare.