Hung, Mao-Wei; Liu, Yu-Jane; Tsai, Chia-Fen - In: Journal of Corporate Finance 18 (2012) 1, pp. 38-64
This paper examines the diversification choices of top managers and their implications for the levels of portfolio equity incentives as well as for firms' financial policies. Standard portfolio theory should also apply to corporate managers and therefore excessive risk exposures to the firm...