Stock ownership and political behavior: evidence from demutualizations

A natural experiment in which customer-owned mutual companies converted to publicly listed firms created a plausibly exogenous shock to the stock market participation status of tens of thousands of people. We find the sh
A natural experiment in which customer-owned mutual companies converted to publicly listed firms created a plausibly exogenous shock to the stock market participation status of tens of thousands of people. We find the shock changed the way people vote in the affected areas, with a 10% increase in share-ownership rate being followed by a 1.3%–3.1% increase in right-of-center vote share. The institutional details and additional tests suggest that wealth, liquidity, and tax-related incentives cannot fully explain the results. A plausible explanation is that the associated increase in the salience of stock ownership causes a shift in voters’ attention.
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Metadaten
Author:Markku Kaustia, Samuli Knüpfer, Sami Torstila
URN:urn:nbn:de:hebis:30:3-293706
URL:http://ssrn.com/abstract=2209645
DOI:http://dx.doi.org/10.2139/ssrn.2209645
Parent Title (German):SAFE working paper series ; No. 2
Series (Serial Number):SAFE working paper series (2)
Publisher:Goethe-Univ., House of Finance, Sustainable Architecture for Finance in Europe, SAFE
Place of publication:Frankfurt am Main
Document Type:Working Paper
Language:English
Year of Completion:2013
Year of first Publication:2013
Publishing Institution:Universitätsbibliothek Johann Christian Senckenberg
Release Date:2013/04/16
Tag:attention; political behavior; salience; stock market participation
Issue:Version 26. Febr. 2013
Pagenumber:53
HeBIS PPN:337744874
Institutes:Wirtschaftswissenschaften
House of Finance (HoF)
Center for Financial Studies (CFS)
Dewey Decimal Classification:330 Wirtschaft
JEL-Classification:D72 Models of Political Processes: Rent-Seeking, Elections, Legislatures, and Voting Behavior
G11 Portfolio Choice; Investment Decisions
P16 Political Economy
Sammlungen:Universitätspublikationen
Licence (German):License Logo Veröffentlichungsvertrag für Publikationen

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