Stock market ownership transitions

Yuxin Zhang, George M. Korniotis, Yosef Bonaparte, Alok Kumar, Alexander Michaelides

Research output: Journal PublicationArticlepeer-review


A significant portion of U.S. households enters and exits investment accounts. Empirically, income and wealth changes are related to these transitions, with income changes not affecting the retired. We find that a life-cycle model with participation costs cannot match the observed ownership dynamics. An extension with a stock-market crash fits better the average participation rate and the ownership transitions of the middle-aged and retired, but not the ownership dynamics of the young, which is better captured by a model with elevated income risk. Overall, across the life-cycle, ownership transitions respond to wealth shocks in both model and data.
Original languageEnglish
JournalManagement Science
Publication statusAccepted/In press - 2024


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