In this study we use direct estimates of the portfolio diversification of the largest shareholder in a firm to study the impact of shareholder diversification on the firm. For firms where the controlling shareholder is an individual, our tests indicate that the owner-managers use debt, dual...

Using information from insiders' actual tax forms, filed with the Swedish tax authorities, we find evidence that firm dividend policy conforms to the insiders' tax-induced preferences. These results support the theory that some shareholders actively adjust dividend policy for their personal...

In this study we use direct estimates of the diversification of the largest shareholder in a firm to study the impact of shareholder diversification on the firm. Overall, we find that under diversified controlling shareholders value control very highly. However, there is limited evidence that...

Some studies have provided evidence that hedging increases firm value. Other studies have shown that managerial incentives may influence firm hedging. In this paper we provide evidence that hedging increases firm value, however, when hedging is based upon incentives caused by managers' options,...