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dc.contributor.authorBilias, Yannisen_US
dc.contributor.authorGeorgarakos, Dimitrisen_US
dc.contributor.authorHaliassos, Michaelen_US
dc.date.accessioned2006-08-08en_US
dc.date.accessioned2009-07-24T13:47:56Z-
dc.date.available2009-07-24T13:47:56Z-
dc.date.issued2006en_US
dc.identifier.piurn:nbn:de:hebis:30-27731-
dc.identifier.urihttp://hdl.handle.net/10419/25480-
dc.description.abstractSeveral recent studies have addressed household participation in the stock market, but relatively few have focused on household stock trading behavior. Household trading is important for the stock market, as households own more than 40% of the NYSE capitalization directly and can also influence trading patterns of institutional investors by adjusting their indirect stock holdings. Existing studies based on administrative data offer conflicting results. Discount brokerage data show excessive trading to the detriment of stockholders, while data on retirement accounts indicate extreme inactivity. This paper uses data representative of the population to document the extent of household portfolio inertia and to link it to household characteristics and to stock market movements. We document considerable portfolio inertia, as regards both changing stockholding participation status and trading stocks, and find that specific household characteristics contribute to the tendency to exhibit such inertia. Although our findings suggest some dependence of trading directly-held equity through brokerage accounts on the performance of the stock market index, they do not indicate that the recent expansion in the stockholder base and the experience of the stock market downswing have significantly altered the overall propensity of households to trade in stocks or to switch participation status in a way that could contribute to stock market instability.en_US
dc.language.isoengen_US
dc.publisherCenter for Financial Studies Frankfurt, Mainen_US
dc.relation.ispartofseriesCFS Working Paper 2006/14en_US
dc.subject.jelG11en_US
dc.subject.jelE21en_US
dc.subject.ddc330en_US
dc.subject.keywordStockholdingen_US
dc.subject.keywordPortfolio Inertiaen_US
dc.subject.keywordStock Tradingen_US
dc.subject.keywordHousehold Portfoliosen_US
dc.titlePortfolio inertia and stock market fluctuationsen_US
dc.typeWorking Paperen_US
dc.identifier.ppn515353817en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
dc.identifier.repecRePEc:zbw:cfswop:200614-
Appears in Collections:CFS Working Paper Series, Universität Frankfurt a. M.

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