Managerial Ownership on Risk in the Netherlands.

This paper will research the relationship between managerial ownership and risk in the Dutch market. In the review two main opposing hypothesis are identified, regarding a negative and a positive relationship. The hypothesis for the Dutch markets states that the relationship is in accordance with the risk-aversion hypothesis, and a negative relationship between risk and managerial ownership is expected. This is analysed via Bloomberg data of relevant variables with the addition to control for option awards. The research outcomes are inconclusive with regards to the influence of option awards, no significant relationship between the ownership of executives and risk. However, a significant relationship is found between the ownership of all insiders and risk, which confirms the hypothesis.