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Employees' investment behaviors in a company based savings plan

Author

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  • Nicolas Aubert

    (DEFI - Centre de recherche en développement économique et finance internationale - GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique)

  • Thomas Rapp

    (University of Maryland [College Park] - University of Maryland System)

Abstract

This paper investigates the investment behaviors of 44,649 employees working in a CAC 40 index listed company. The company savings plan offers its employees a choice among various asset categories generally listed by financial institutions. We first describe employees' saving behaviors for each asset category offered within the company savings plan. We then focus on the individual determinants of employees' participation in each asset category and the total amount invested in each asset category. We finally investigate the individual determinants of portfolio breadth in terms of number of funds selected and number of asset categories selected. We document extreme saving strategies such as high investment in company stocks. We find the existence of a positive association between the number of funds offered, and the number of funds chosen within the plan. Our results emphasize how several proxies of human capital are associated with company-based investment strategies.

Suggested Citation

  • Nicolas Aubert & Thomas Rapp, 2010. "Employees' investment behaviors in a company based savings plan," Post-Print halshs-00454018, HAL.
    • Handle: RePEc:hal:journl:halshs-00454018
    DOI: 10.3917/fina.311.0005
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00454018
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    Cited by:

    1. Nicolas Aubert, 2016. "Does the Catering Theory of Dividend Apply to the French Listed Firms?," Bankers, Markets & Investors, ESKA Publishing, issue 145, pages 27-38, November-.
    2. Thomas Rapp & Nicolas Aubert, 2011. "Bank Employee Incentives and Stock Purchase Plans Participation," Journal of Financial Services Research, Springer;Western Finance Association, vol. 40(3), pages 185-203, December.
    3. Kamal Anouar & Nicolas Aubert, 2016. "Does the catering theory of dividend apply to the French listed firms?," Working Papers halshs-01401867, HAL.
    4. Nicolas Aubert & Philippe Bernheim, 2021. "What the PACTE law changes for employee savings and participation?," Post-Print hal-02532708, HAL.
    5. repec:dau:papers:123456789/6270 is not listed on IDEAS

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