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How long do equity owners hang on to their stocks?

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  • Odegaard, Bernt Arne

    (UiS)

Abstract

We characterize the equity holding periods for all equity owners in a stock market over a 15 year period. The median holding period is 0.75 years. The hazard function for equity ownership is characterized by negative aging, an equity owner is less and less likely to realize a position as time passes. There are clear differences between owner types, where private individuals have the longest holding periods, and financial owners are the least patient. Wealthier households have shorter holding periods. Using turnover to estimate holding periods severely over-estimates actual holding periods.

Suggested Citation

  • Odegaard, Bernt Arne, 2017. "How long do equity owners hang on to their stocks?," UiS Working Papers in Economics and Finance 2017/6, University of Stavanger.
    • Handle: RePEc:hhs:stavef:2017_006
    as

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    File URL: http://www1.uis.no/ansatt/odegaard/uis_wps_econ_fin/uis_wps_2017_06_odegaard.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Equity Holding period; Duration; Failure Time; Survival;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates

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