What explains household stock holdings?
AbstractThis is an empirical study of the determinants of stock holdings using data from the U.S. Survey of Consumer Finances from 1992 to 2001. There is a great heterogeneity in the way households form their portfolios. Stock ownership is positively correlated with various measures of wealth, age, retirement savings, and having sought financial advice. It is negatively correlated with holdings of alternative risky investments, such as investments in private businesses, and with the willingness to undertake non-financial investments in the future. While we can predict reasonably well who holds stocks, we have less predictive power about the share of stocks owned by those who hold positive amounts.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Journal of Banking & Finance.
Volume (Year): 30 (2006)
Issue (Month): 9 (September)
Contact details of provider:
Web page: http://www.elsevier.com/locate/jbf
Other versions of this item:
- G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Heaton, John & Lucas, Deborah, 1997. "Market Frictions, Savings Behavior, And Portfolio Choice," Macroeconomic Dynamics, Cambridge University Press, vol. 1(01), pages 76-101, January.
- Luis M. Viceira, 2001.
"Optimal Portfolio Choice for Long-Horizon Investors with Nontradable Labor Income,"
Journal of Finance,
American Finance Association, vol. 56(2), pages 433-470, 04.
- Luis M. Viceira, 1999. "Optimal Portfolio Choice for Long-Horizon Investors with Nontradable Labor Income," NBER Working Papers 7409, National Bureau of Economic Research, Inc.
- Valery Polkovnichenko, 2007. "Life-Cycle Portfolio Choice with Additive Habit Formation Preferences and Uninsurable Labor Income Risk," Review of Financial Studies, Society for Financial Studies, vol. 20(1), pages 83-124, January.
- Brad M. Barber & Terrance Odean, 2001. "Boys Will Be Boys: Gender, Overconfidence, And Common Stock Investment," The Quarterly Journal of Economics, MIT Press, vol. 116(1), pages 261-292, February.
- Bertaut, Carol C. & Haliassos, Michael, 1997.
"Precautionary portfolio behavior from a life-cycle perspective,"
Journal of Economic Dynamics and Control,
Elsevier, vol. 21(8-9), pages 1511-1542, June.
- Carol C. Bertaut & Michael Haliassos, 1996. "Precautionary portfolio behavior from a life-cycle perspective," International Finance Discussion Papers 542, Board of Governors of the Federal Reserve System (U.S.).
- Carol C. Bertaut & Michael Haliassos, 1996. "Precautionary Portfolio Behavior from a Life-Cycle Perspective," Finance 9604001, EconWPA.
- Joao F. Cocco, 2005. "Consumption and Portfolio Choice over the Life Cycle," Review of Financial Studies, Society for Financial Studies, vol. 18(2), pages 491-533.
- Daniel Bergstresser & James Poterba, 2002.
"Asset Allocation and Asset Location: Household Evidence from the Survey of Consumer Finances,"
NBER Working Papers
9268, National Bureau of Economic Research, Inc.
- Bergstresser, Daniel & Poterba, James, 2004. "Asset allocation and asset location: household evidence from the survey of consumer finances," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 1893-1915, August.
- Canner, Niko & Mankiw, N Gregory & Weil, David N, 1997.
"An Asset Allocation Puzzle,"
American Economic Review,
American Economic Association, vol. 87(1), pages 181-91, March.
- James Banks & Richard Blundell & James Smith, 2004. "Wealth Portfolios in the United Kingdom and the United States," NBER Chapters, in: Perspectives on the Economics of Aging, pages 205-246 National Bureau of Economic Research, Inc.
- Miquel Faig & Pauline Shum, 2002.
"Portfolio Choice in the Presence of Personal Illiquid Projects,"
Journal of Finance,
American Finance Association, vol. 57(1), pages 303-328, 02.
- Miquel Faig & Pauline Shum, 2000. "Portfolio Choice in the Presence of Personal Illiquid Projects," Working Papers faig-00-03, University of Toronto, Department of Economics.
- Basak, Suleyman & Cuoco, Domenico, 1998. "An Equilibrium Model with Restricted Stock Market Participation," Review of Financial Studies, Society for Financial Studies, vol. 11(2), pages 309-41.
- Terrance Odean, 1999. "Do Investors Trade Too Much?," American Economic Review, American Economic Association, vol. 89(5), pages 1279-1298, December.
- Julie Agnew & Pierluigi Balduzzi & Annika Sundén, 2003. "Portfolio Choice and Trading in a Large 401(k) Plan," American Economic Review, American Economic Association, vol. 93(1), pages 193-215, March.
- Alexander, Gordon J. & Jones, Jonathan D. & Nigro, Peter J., 1998. "Mutual fund shareholders: characteristics, investor knowledge, and sources of information," Financial Services Review, Elsevier, vol. 7(4), pages 301-316.
- Nicholas Barberis, 2000. "Investing for the Long Run when Returns Are Predictable," Journal of Finance, American Finance Association, vol. 55(1), pages 225-264, 02.
- repec:cup:macdyn:v:1:y:1997:i:1:p:76-101 is not listed on IDEAS
- Ana M. Aizcorbe & Arthur B. Kennickell & Kevin B. Moore, 2003. "Recent changes in U.S. family finances: evidence from the 1998 and 2001 Survey of Consumer Finances," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), issue Jan, pages 1-32.
- Monica Paiella, 2001.
"Limited financial market participation: a transaction cost-based explanation,"
IFS Working Papers
W01/06, Institute for Fiscal Studies.
- Monica Paiella, 2001. "Limited Financial Market Participation: A Transaction Cost-Based Explanation," Temi di discussione (Economic working papers) 415, Bank of Italy, Economic Research and International Relations Area.
- John Heaton & Deborah Lucas, 2000. "Portfolio Choice and Asset Prices: The Importance of Entrepreneurial Risk," Journal of Finance, American Finance Association, vol. 55(3), pages 1163-1198, 06.
- Ulrike Malmendier & Stefan Nagel, 2011.
"Depression Babies: Do Macroeconomic Experiences Affect Risk Taking?,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 126(1), pages 373-416.
- Ulrike Malmendier & Stefan Nagel, 2009. "Depression Babies: Do Macroeconomic Experiences Affect Risk-Taking?," NBER Working Papers 14813, National Bureau of Economic Research, Inc.
- Hung, Mao-Wei & Liu, Yu-Jane & Tsai, Chia-Fen, 2012. "Managerial personal diversification and portfolio equity incentives," Journal of Corporate Finance, Elsevier, vol. 18(1), pages 38-64.
- Jiang, Chonghui & Ma, Yongkai & An, Yunbi, 2010. "An analysis of portfolio selection with background risk," Journal of Banking & Finance, Elsevier, vol. 34(12), pages 3055-3060, December.
- Bhandari, Gokul & Deaves, Richard, 2008. "Misinformed and informed asset allocation decisions of self-directed retirement plan members," Journal of Economic Psychology, Elsevier, vol. 29(4), pages 473-490, August.
- Hiroshi Fujiki & Naohisa Hirakata & Etsuro Shioji, 2012. "Aging and Household Stockholdings: Evidence from Japanese Household Survey Data," IMES Discussion Paper Series 12-E-17, Institute for Monetary and Economic Studies, Bank of Japan.
- Christelis, Dimitris & Georgarakos, Dimitris & Haliassos, Michael, 2011.
"Stockholding: Participation, location, and spillovers,"
Journal of Banking & Finance,
Elsevier, vol. 35(8), pages 1918-1930, August.
- Haliassos, Michael & Christelis, Dimitris & Georgarakos, Dimitris, 2010. "Stockholding: Participation, Location, and Spillovers," MEA discussion paper series 10208, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
- Christelis, Dimitris & Georgarakos, Dimitris & Haliassos, Michalis, 2010. "Stockholding: Participation, Location, and Spillovers," CEPR Discussion Papers 8113, C.E.P.R. Discussion Papers.
- Xu, Guo & Wing-Keung, Wong & Lixing, Zhu, 2013. "Comparisons and Characterizations of the Mean-Variance, Mean-VaR, Mean-CVaR Models for Portfolio Selection With Background Risk," MPRA Paper 51827, University Library of Munich, Germany.
- repec:ltr:wpaper:2008.05 is not listed on IDEAS
- Tomoki Kitamura & Kunio Nakashima, 2009. "Changes in Equity Investment of Japan's Households After the Introduction of Defined Contribution Plans," Economics Bulletin, AccessEcon, vol. 29(3), pages 2256-2264.
- Buly A Cardak & Roger K. Wilkins, 2008.
"The Determinants of Household Risky Asset Holdings: Australian Evidence on Background Risk and Other Factors#,"
2008.05, School of Economics, La Trobe University.
- Cardak, Buly A. & Wilkins, Roger, 2009. "The determinants of household risky asset holdings: Australian evidence on background risk and other factors," Journal of Banking & Finance, Elsevier, vol. 33(5), pages 850-860, May.
- Hjalmarsson, Erik & Hjalmarsson, Randi, 2009. "Efficiency in housing markets: Which home buyers know how to discount?," Journal of Banking & Finance, Elsevier, vol. 33(11), pages 2150-2163, November.
- James Dow, 2009. "Age, investing horizon and asset allocation," Journal of Economics and Finance, Springer, vol. 33(4), pages 422-436, October.
- Arrondel, Luc & Savignac, Frédérique, 2010.
"Stockholding : Does housing wealth matter ?,"
Economics Papers from University Paris Dauphine
123456789/8576, Paris Dauphine University.
- Veld-Merkoulova, Yulia V., 2011. "Investment horizon and portfolio choice of private investors," International Review of Financial Analysis, Elsevier, vol. 20(2), pages 68-75, April.
- Loibl, Cäzilia & Hira, Tahira K., 2009. "Investor information search," Journal of Economic Psychology, Elsevier, vol. 30(1), pages 24-41, February.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.