Cross-ownership and portfolio choice
نویسندگان
چکیده
Cross-ownership smooths firms' idiosyncratic shocks but affects their portfolio choice and, therefore, risk-taking position. The classical intuition on the role of pooling risk in raising welfare is valid when ownership evenly dispersed. However, some firms concentrated hands a few others, deeper integration leads to excessive and volatility consequently, it results lower aggregate welfare.
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ژورنال
عنوان ژورنال: Journal of Economic Theory
سال: 2021
ISSN: ['1095-7235', '0022-0531']
DOI: https://doi.org/10.1016/j.jet.2021.105194