Portfolio Concentration and Firm Performance：投资组合集中度与企业绩效_精品.pdf

Portfolio Concentration and Firm Performance (forthcoming in Journal of Financial and Quantitative Analysis , 2014) by Benjamin Maury (co-authored with Anders Ekholm) Hanken School of Economics Presentation at Hanken School of Economics, March 10, 2014 Introdcution 禄 Previous literature has focused on shareholders鈥 ownership in a stock as compared to the firm鈥檚 number of shares outstanding (鈥渂lockholdings鈥? 禄 A new and complementing approach taken in this paper: shareholders鈥 ownership in a stock as compared to their total portfolio holdings (鈥減ortfolio concentration鈥? 禄 Portfolio concentration becomes important when investors are unable to scale up information collection due to resource constraints 禄 This is especially the case for smaller shareholders for whom the investment process becomes a constrained optimization problem: compare investment in the firm to the other holdings in the portfolio when deciding how much to analyze a firm 禄 Our paper is the first to conceptually and empirically explore the relation between shareholder portfolio concentration and future firm operational performance and valuation Portfolio concentration and firm performance Previous Literature 禄 Concentrated holdings can cause superior firm performance due to: 禄 Exit (or threat of exit) 禄Informed blockholders鈥 exit (or threat of exit) exerts downward pressure on the stock price 禄 Informed investors lead to greater price informativeness 禄Greater price informativeness may improve decision-making by managers as their compensation is tied to the stock price (Edmans, 2009; Admati and Pfleiderer, 2009) 禄 Learning 禄The manager learnsfrom stock prices , and this will help him make