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The evolution of aggregate stock ownership

  • Rydqvist, Kristian
  • Spizman, Joshua
  • Strebulaev, Ilya
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    Since World War II, direct stock ownership by households has largely been replaced by indirect stock ownership by financial institutions. We argue that tax policy is the driving force. Using long time-series from eight countries, we show that the fraction of household ownership decreases with measures of the tax benefits of holding stocks inside a pension plan. This finding is important for policy considerations on effective taxation and for financial economics research on the long-term effects of taxation on corporate finance and asset prices.

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    Paper provided by Center for Financial Studies (CFS) in its series CFS Working Paper Series with number 2011/18.

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    Date of creation: 2011
    Date of revision:
    Handle: RePEc:zbw:cfswop:201118
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    10. Clemens Sialm, 2009. "Tax Changes and Asset Pricing," American Economic Review, American Economic Association, vol. 99(4), pages 1356-83, September.
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    17. Julian Franks & Colin Mayer & Hannes Wagner, 2006. "The Origins of the German Corporation - Finance, Ownership and Control," Review of Finance, European Finance Association, vol. 10(4), pages 537-585, December.
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