EconStor >
Zentrum für Europäische Wirtschaftsforschung (ZEW), Mannheim >
ZEW Discussion Papers >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/24054
  

Full metadata record

DC FieldValueLanguage
dc.contributor.authorMüller, Elisabethen_US
dc.date.accessioned2009-02-16T14:48:18Z-
dc.date.available2009-02-16T14:48:18Z-
dc.date.issued2004en_US
dc.identifier.urihttp://hdl.handle.net/10419/24054-
dc.description.abstractOwners of private companies are often highly underdiversified which exposes them to idiosyncratic risk. We investigate the consequences of underdiversification at the company level. Information on US companies and their owners is obtained from the Survey of Consumer Finances and the Survey of Small Business Finances. Underdiversification, measured as the share of the owner's net worth invested in the company, has a significant positive relationship with profitability, measured as the return on equity. We identify two causes for this underdiversification effect: higher required returns and higher effort. The results have important consequences for investment decisions at private companies.en_US
dc.language.isoengen_US
dc.publisherZentrum für Europäische Wirtschaftsforschung (ZEW) Mannheim-
dc.relation.ispartofseriesZEW Discussion Papers 04-29en_US
dc.relation.hasversionhttp://hdl.handle.net/10419/29639-
dc.subject.jelG11en_US
dc.subject.jelG32en_US
dc.subject.ddc330en_US
dc.subject.keywordunderdiversificationen_US
dc.subject.keywordrequired returnsen_US
dc.subject.keywordincentivesen_US
dc.subject.keywordprivate companiesen_US
dc.subject.keywordwealthen_US
dc.subject.keywordentrepreneurshipen_US
dc.subject.stwKlein- und Mittelunternehmenen_US
dc.subject.stwUnternehmeren_US
dc.subject.stwInvestitionen_US
dc.subject.stwPortfolio-Managementen_US
dc.subject.stwRentabilitäten_US
dc.subject.stwÖkonomischer Anreizen_US
dc.subject.stwSchätzungen_US
dc.subject.stwVereinigte Staatenen_US
dc.titleUnderdiversification in Private Companies: Required Returns and Incentive Effectsen_US
dc.typeWorking Paperen_US
dc.identifier.ppn391526030en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
dc.identifier.repecRePEc:zbw:zewdip:2183-
Appears in Collections:ZEW Discussion Papers
Publikationen von Forscherinnen und Forschern des ZEW

Files in This Item:
File Description SizeFormat
dp0429.pdf291.89 kBAdobe PDF
No. of Downloads: Counter Stats
Show simple item record
Download bibliographical data as: BibTeX

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.