Stockholding: from participation to location and to participation spillovers

  • This paper provides a joint analysis of household stockholding participation, stock location among stockholding modes, and participation spillovers, using data from the US Survey of Consumer Finances. Our multivariate choice model matches observed participation rates, conditional and unconditional, and asset location patterns. Financial education and sophistication strongly affect direct stockholding and mutual fund participation, while social interactions affect stockholding through retirement accounts only. Household characteristics influence stockholding through retirement accounts conditional on owning retirement accounts, unlike what happens with stockholding through mutual funds. Although stockholding is more common among retirement account owners, this fact is mainly due to their characteristics that led them to buy retirement accounts in the first place rather than to any informational advantages gained through retirement account ownership itself. Finally, our results suggest that, taking stockholding as given, stock location is not arbitrary but crucially depends on investor characteristics. JEL Classification: G11, E21, D14, C35

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Metadaten
Author:Dimitris Christelis, Dimitris Georgarakos, Michael HaliassosORCiDGND
URN:urn:nbn:de:hebis:30-63730
Parent Title (German):Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 2009,02
Series (Serial Number):CFS working paper series (2009, 02)
Document Type:Working Paper
Language:English
Year of Completion:2009
Year of first Publication:2009
Publishing Institution:Universit├Ątsbibliothek Johann Christian Senckenberg
Release Date:2009/04/16
Tag:Asset Location; Household Finance; Multivariate Probit; Retirement Accounts; Simulated Maximum Likelihood; Stockholding
GND Keyword:USA; Haushalt; Aktienanlage
HeBIS-PPN:211592439
Institutes:Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS)
Dewey Decimal Classification:3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft
Licence (German):License LogoDeutsches Urheberrecht