Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/212396 
Year of Publication: 
2017
Series/Report no.: 
Bank of Finland Research Discussion Papers No. 25/2017
Publisher: 
Bank of Finland, Helsinki
Abstract: 
We find that investors tend to hold the same securities as their parents. Instrumental variables that exploit social networks and a natural experiment based on mergers allow us to attribute the security-choice correlation to social influence within families. This influence runs not only from parents to children, but also in the opposite direction. Security holdings correlate more when family members are more likely to communicate and when they are more susceptible to social influence. The identical security holdings that social influence generates largely explain why risk-return profiles of household portfolios correlate across generations.
JEL: 
G11
D63
Persistent Identifier of the first edition: 
ISBN: 
978-952-323-184-9
Document Type: 
Working Paper

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