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Stockholding: Participation, location, and spillovers

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  • Christelis, Dimitris
  • Georgarakos, Dimitris
  • Haliassos, Michael

Abstract

This paper provides the first joint analysis of household stockholding participation, location among stockholding modes, and participation spillovers. Our model matches observed participation, conditional and unconditional, and asset location patterns. We find that financial sophistication correlates strongly only with direct stockholding and mutual fund participation, while social interactions mainly influence stockholding through retirement accounts. Whether retirement account owners include stocks in their accounts strongly depends on owner characteristics, which is not the case with mutual fund owners and investment in stock funds. Stockholding is more common among retirement account owners, but mainly because of owner characteristics rather than of any participation spillovers from retirement account ownership.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Banking & Finance.

Volume (Year): 35 (2011)
Issue (Month): 8 (August)
Pages: 1918-1930

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Handle: RePEc:eee:jbfina:v:35:y:2011:i:8:p:1918-1930

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Web page: http://www.elsevier.com/locate/jbf

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Keywords: Stockholding Asset location Retirement accounts Household finance Multivariate probit Simulated maximum likelihood;

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Cited by:
  1. Michael Berlemann & Marc-André Luik, 2014. "Institutional Reform and Depositors' Portfolio Choice - Evidence from Censored Quantile Regressions," CESifo Working Paper Series 4782, CESifo Group Munich.
  2. Christelis, Dimitris & Georgarakos, Dimitris, 2013. "Investing at home and abroad: Different costs, different people?," Journal of Banking & Finance, Elsevier, vol. 37(6), pages 2069-2086.
  3. Becker, Gideon & Dimpfl, Thomas, 2014. "Labor income risk and the reluctance of fouseholds to invest in risky financial assets: A panel data analysis," University of Tuebingen Working Papers in Economics and Finance 72, University of Tuebingen, Faculty of Economics and Social Sciences.
  4. Barasinska, Nataliya & Schäfer, Dorothea, 2013. "Is the willingness to take financial risk a sex-linked trait? Evidence from national surveys of household finance," Discussion Papers 05/2013, Deutsche Bundesbank, Research Centre.

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