Abstract
This study examines how housing influences households’ risky asset holdings in multiple European countries, using the 2004 Survey of Health, Ageing and Retirement in Europe (SHARE) data set. This research provides three major findings. First, homeowners in bank-based economies have a significantly lower probability of participating in the stock market, whereas in market-based economies, homeownership has no significant impact on this probability. Second, homeowners tend to invest a lower share of their financial assets in stocks compared to renters. Third, households with a higher home value to wealth ratio invest a lower share of financial assets in stocks in countries with more developed mortgage markets. In contrast, in countries with underdeveloped mortgage markets, households with a higher home value to wealth ratio invest a larger share of financial assets in stocks. The results of this study suggest that recognizing differences in financial market structures is crucial to understanding the relationship between housing investment and stock investment.
| Original language | English |
|---|---|
| Pages (from-to) | 254-267 |
| Number of pages | 14 |
| Journal | Review of European Studies |
| Volume | 6 |
| Issue number | 4 |
| DOIs | |
| Publication status | Published - 2014 Sep 1 |
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All Science Journal Classification (ASJC) codes
- Cultural Studies
- History
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Homeownership and investment in risky assets in Europe. / Cho, Insook.
In: Review of European Studies, Vol. 6, No. 4, 01.09.2014, p. 254-267.Research output: Contribution to journal › Article
TY - JOUR
T1 - Homeownership and investment in risky assets in Europe
AU - Cho, Insook
PY - 2014/9/1
Y1 - 2014/9/1
N2 - This study examines how housing influences households’ risky asset holdings in multiple European countries, using the 2004 Survey of Health, Ageing and Retirement in Europe (SHARE) data set. This research provides three major findings. First, homeowners in bank-based economies have a significantly lower probability of participating in the stock market, whereas in market-based economies, homeownership has no significant impact on this probability. Second, homeowners tend to invest a lower share of their financial assets in stocks compared to renters. Third, households with a higher home value to wealth ratio invest a lower share of financial assets in stocks in countries with more developed mortgage markets. In contrast, in countries with underdeveloped mortgage markets, households with a higher home value to wealth ratio invest a larger share of financial assets in stocks. The results of this study suggest that recognizing differences in financial market structures is crucial to understanding the relationship between housing investment and stock investment.
AB - This study examines how housing influences households’ risky asset holdings in multiple European countries, using the 2004 Survey of Health, Ageing and Retirement in Europe (SHARE) data set. This research provides three major findings. First, homeowners in bank-based economies have a significantly lower probability of participating in the stock market, whereas in market-based economies, homeownership has no significant impact on this probability. Second, homeowners tend to invest a lower share of their financial assets in stocks compared to renters. Third, households with a higher home value to wealth ratio invest a lower share of financial assets in stocks in countries with more developed mortgage markets. In contrast, in countries with underdeveloped mortgage markets, households with a higher home value to wealth ratio invest a larger share of financial assets in stocks. The results of this study suggest that recognizing differences in financial market structures is crucial to understanding the relationship between housing investment and stock investment.
UR - http://www.scopus.com/inward/record.url?scp=84911948655&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84911948655&partnerID=8YFLogxK
U2 - 10.5539/res.v6n4p254
DO - 10.5539/res.v6n4p254
M3 - Article
AN - SCOPUS:84911948655
VL - 6
SP - 254
EP - 267
JO - Review of European Studies
JF - Review of European Studies
SN - 1918-7173
IS - 4
ER -