Determinants of Holding Self-company Stockin the U. S. Defined Contribution Plans

• Main Authors: Yi-Shan Chu, 朱億珊
• Other Authors: 賴慧文
• Format: Others
• Language: en_US
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/11891993085602433477

碩士 === 元智大學 === 財務金融學系 === 95 === This study examines the determinants that individual investors hold self-company stock in their defined contribution plans. Several dimensions have been investigated in this study. First, I consider whether the company-stock investment is a rational response to the information available to employees, or called information-based familiarity. Secondly, I consider whether investors hedge the risks of holding company stock in their defined contribution plans by appropriate investment in their regular accounts? Third, I take subjective risk attitudes and life cycle variables into accounts to examine the consistency between risk-taking attitudes and behavior of individual investors in their investment of defined contribution plans while the industry effect, firm size effect and stock market performance are considered in the models. The data are based on 2004 Survey of Consumer Finances and Heckman selection model is applied in this study. The results provide evidences that individual investors do not engage in hedge and their company-stock investment is information-based driven to some extent.