Large shareholders take more risks
Corporate risk-taking and the share of equity ownership are positively correlated, new research from the Bank of Canada posits.
However, the analysis shows that this holds only for owners who have equity in more than one company as being in a group allows shareholders to act from a more diversified position and take higher risk.
The research also finds that countries with better protection of shareholder rights seem to be associated with more risk-taking, while in countries with strong
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