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Martin Holmen ORCID logo, Jonas Råsbrant ORCID logo



Some studies have shown that managers concentrate large fractions of their wealth in the equity of their own firm. In this paper we use a unique dataset and investigate how Swedish owner-managers invest remaining wealth conditional on a major investment in their own firm. We find no evidence that owner-managers seek diversification benefits when they invest remaining wealth. Instead some owner-managers invest remaining wealth in the industry where they already have a substantial capital investment. We conclude that some owner-managers seek to exploit their industry-specific superior information when they invest wealth not tied up in their own firms

Keywords: Portfolio choice, Under-diversification, Owner-managers

How to cite this paper: Holmen, M., & Råsbrant, J. (2006). Owner-managers’ equity portfolio choice. Corporate Ownership & Control, 4(1), 37-48. https://doi.org/10.22495/cocv4i1p3