Stockholding: Participation, Location, and Spillovers

Christelis, Dimitris; Georgarakos, Dimitris; Haliassos, Michael

doi:10.2139/ssrn.1356979

Stockholding: Participation, Location, and Spillovers

56 Pages Posted: 26 Mar 2009 Last revised: 20 Jan 2011

Dimitris Christelis

Adam Smith Business School, University of Glasgow; Centre for Studies in Economics and Finance (CSEF), University of Naples Federico II; Center for Financial Studies (CFS); Netspar

Dimitris Georgarakos

European Central Bank (ECB) - Directorate General Research; Center for Financial Studies (CFS)

Goethe University Frankfurt - House of Finance; Goethe University Frankfurt - Faculty of Economics and Business Administration; CEPR; NETSPAR; Goethe University Frankfurt - Institute for Monetary and Financial Stability (IMFS)

There are 5 versions of this paper

Date Written: October 18, 2010

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 them strongly depends on owner characteristics, unlike 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 spillovers from retirement account ownership.

Keywords: Stockholding, asset location, retirement accounts, household finance, multivariate probit, simulated maximum likelihood

JEL Classification: G11, E21, D14, C35

Suggested Citation: Suggested Citation

Christelis, Dimitrios and Georgarakos, Dimitris and Haliassos, Michael, Stockholding: Participation, Location, and Spillovers (October 18, 2010). Available at SSRN: https://ssrn.com/abstract=1356979 or http://dx.doi.org/10.2139/ssrn.1356979