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Portfolio Performance, Managerial Ownership, and the Size Effect
Journal article

Portfolio Performance, Managerial Ownership, and the Size Effect

George Tsetsekos and Richard DeFusco
Journal of portfolio management, v 16(3)
01 Jan 1990

Abstract

Managers Market value Ownership Portfolio management Portfolio performance Return on investment Statistical analysis
The extent to which portfolio returns depend on the degree of convergence of interest between managers and shareholders is examined using managerial holdings as a proxy for the degree of convergence of interest. Because managerial holdings vary with firm size and because risk-adjusted returns of small firms are superior to those of large firms, the impact of managerial ownership on the strength of returns for small and large firms is examined. Information on managerial holdings was obtained from The Value Line Investment Survey for the last quarter of each fiscal year from 1979 to 1984; a sample of 887 firms was produced. Risk-return measures are calculated for sets of basic and randomized portfolios. The empirical results suggest that the size anomaly is not explained on the basis of managerial ownership and that excess returns of firms adjusted for size are unrelated to the degree of managerial ownership.

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Collaboration types
Domestic collaboration
Web of Science research areas
Business, Finance
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