Which Investors Fear Expropriation? Evidence from Investors’ Portfolio Choices

Which Investors Fear Expropriation? Evidence from Investors’ Portfolio Choices

  • MARIASSUNTA GIANNETTI
  • ANDREI SIMONOV

Article first published online: 16th May 2006 DOI: 10.1111/j.1540-6261.2006.00879.x

Abstract


Using a data set that provides unprecedented detail on investors' stockholdings, we analyze whether investors take the quality of corporate governance into account when selecting stocks. We find that all categories of investors (domestic and foreign, institutional and small individual) who generally enjoy only security benefits are reluctant to invest in companies with weak corporate governance. In contrast, individuals connected with company insiders are more likely to invest in weak corporate governance companies. These findings suggest that it is important to distinguish between investors who enjoy private benefits or access private information, and investors who enjoy only security benefits.

Sign in to access the full article.

Related articles


MISCELLANEA

Article first published online: 5th July 2006 / DOI: 10.1111/j.1540-6261.2006.00880.x

Read Article

Back Matter

Article first published online: 5th July 2006 / DOI: 10.1111/j.1540-6261.2006.00881.x

Read Article

The Effect of Short Selling on Bubbles and Crashes in Experimental Spot Asset Markets

  • ERNAN HARUVY
  • CHARLES N. NOUSSAIR

Article first published online: 16th May 2006 / DOI: 10.1111/j.1540-6261.2006.00868.x

Read Article

Analysts’ Selective Coverage and Subsequent Performance of Newly Public Firms

  • SOMNATH DAS
  • RE‐JIN GUO
  • HUAI ZHANG

Article first published online: 16th May 2006 / DOI: 10.1111/j.1540-6261.2006.00869.x

Read Article

Investor Sentiment and Pre‐IPO Markets

  • FRANCESCA CORNELLI
  • DAVID GOLDREICH
  • ALEXANDER LJUNGQVIST

Article first published online: 16th May 2006 / DOI: 10.1111/j.1540-6261.2006.00870.x

Read Article

Corporate Equity Ownership and the Governance of Product Market Relationships

  • C. EDWARD FEE
  • CHARLES J. HADLOCK
  • SHAWN THOMAS

Article first published online: 16th May 2006 / DOI: 10.1111/j.1540-6261.2006.00871.x

Read Article

Are you an Author?


Please read our submission requirements and find out how to submit your paper to the Journal of Finance

Submit a paper