We examine how owners’ portfolio diversification influences their firms’ financial decision-making and performance. We find that firms with high local ownership use less leverage, but firms with local ownership by locally biased owners use higher debt levels relative to firms with...

There exists a large number of research on ownership structure and managerial compensation and their consequences for shareholder value maximization. However, academic research has been less concerned with analysis of explanatory factors for managerial myopia over time, different markets and...

We examine the relationship between managerial myopia and three governance mechanisms: ownership concentration, short-term incentive plans and the market for corporate control. We first examine a number of measures for longterm investments in physical assets and show that the net depreciation...