The Costs of Owning Employer’s Stocks: Lessons from Taiwan

摘要：

Using data on all employees at listed companies in Taiwan, where pension plans were rare, we find that bias toward employer stocks is generic to individual investor decisionmaking, but not limited to retirement plans. 71 percent of sample employees invest in employer stocks and the employer’s stock makes up on average 47 percent of employee portfolios. The under-diversification resulting from the bias toward employer stocks is highly costly. Holding current portfolio risk constant, employees forego 4.89 percent per annum in raw returns by investing in employer stocks, which represents 39.74 percent of their average 1998 salary income. Our findings have important implications for social security reform and retirement account management.

作者: Yi-Tsung Lee Yu-Jane Liu Ning Zhu

作者单位: Department of Accounting National Chengchi University Taipei, Taiwan Department of Finance National Chengchi University Taipei, Taiwan Graduate School of Management University of California, Davis Davis, CA 95616

会议类型: 国际会议

会议名称: 2005年中国金融国际年会

会议地点: 昆明

会议语种:英文

页码: 1-42

在线出版日期: 2005-07-05（万方平台首次上网日期，不代表论文的发表时间）