ABSTRACT

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 diversified local owners. Firms with high local ownership in urban regions use higher debt levels. In rural regions, firms with high locally biased ownership use higher debt levels relative to firms with diversified local ownership. Finally, although we find weak evidence that firms with high local ownership underperform the market, the underperformance is smaller in firms with high locally biased ownership. Thus, locally biased owners, not local owners with diversified portfolios, have an informed monitoring role in firms, and this effect seems to mitigate negative liquidity consequences. The separation of local owners into those with locally biased and those with diversified portfolios determines when and how local ownership can be used as a good proxy for informed investors.

摘要

我们研究了所有者的投资组合多样化如何影响其公司的财务决策和绩效。我们发现，本地所有权高的公司使用的杠杆较少，但本地所有者偏向本地的公司相对于本地所有者多元化的公司使用更高的债务水平。城市地区当地所有权较高的公司使用较高的债务水平。在农村地区，当地所有权高度偏向所有权的公司相对于当地所有权多元化的公司使用更高的债务水平。最后，虽然我们发现本地所有权高的公司表现逊于市场的微弱证据，但本地偏向所有权高的公司表现不佳。因此，偏向于本地的所有者，而不是具有多元化投资组合的本地所有者，在公司中扮演着知情的监督角色，这种影响似乎减轻了负面的流动性后果。将本地所有者分为具有本地偏见的所有者和具有多元化投资组合的所有者决定了何时以及如何将本地所有权用作知情投资者的良好代理。