Journal article
Portfolio Performance, Managerial Ownership, and the Size Effect
Journal of portfolio management, v 16(3)
01 Jan 1990
Abstract
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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Details
- Title
- Portfolio Performance, Managerial Ownership, and the Size Effect
- Creators
- George Tsetsekos - Drexel UniversityRichard DeFusco - College of Business Administration
- Publication Details
- Journal of portfolio management, v 16(3)
- Publisher
- Pageant Media
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Finance
- Web of Science ID
- WOS:A1990DE19000007
- Other Identifier
- 991019183983004721
InCites Highlights
Data related to this publication, from InCites Benchmarking & Analytics tool:
- Collaboration types
- Domestic collaboration
- Web of Science research areas
- Business, Finance