Access to Credit and Stock Market Participation

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dc.contributor.author Kozak, Serhiey
dc.contributor.author Sosyura, Denis
dc.date.accessioned 2015-05-19T17:48:28Z
dc.date.available 2015-05-19T17:48:28Z
dc.date.issued 2015-11
dc.identifier 1276 en_US
dc.identifier.uri http://hdl.handle.net/2027.42/111729
dc.description.abstract We exploit staggered removals of interstate banking restrictions to identify the causal effect of access to credit on households’ stock market participation and asset allocation. Using micro data on retail brokerage accounts and proprietary data on personal credit histories, we document two effects of the loosening of credit constraints on households’ financial decisions. First, households enter the stock market by opening new brokerage accounts. Second, households increase their asset allocation to risky assets and reduce their allocation to cash, consistent with a lower need for precautionary savings. The effects are stronger for younger and more credit constrained investors. Overall, we establish one of the first direct links between access to credit and households’ investment decisions. en_US
dc.subject stock market participation en_US
dc.subject interstate banking en_US
dc.subject household finance en_US
dc.subject credit constraints en_US
dc.subject.classification Finance en_US
dc.title Access to Credit and Stock Market Participation en_US
dc.type Working Paper en_US
dc.subject.hlbsecondlevel Finance en_US
dc.subject.hlbtoplevel Business
dc.contributor.affiliationum Ross School of Business en_US
dc.contributor.affiliationumcampus Ann Arbor
dc.description.bitstreamurl http://deepblue.lib.umich.edu/bitstream/2027.42/111729/1/1276_Kozak.pdf
dc.description.bitstreamurl http://deepblue.lib.umich.edu/bitstream/2027.42/111729/4/1276_Kozak_Nov2015.pdf
dc.description.bitstreamurl http://deepblue.lib.umich.edu/bitstream/2027.42/111729/6/1276_Kozak_June2016.pdf
dc.description.filedescription Description of 1276_Kozak_Nov2015.pdf : November 2015 revision
dc.description.filedescription Description of 1276_Kozak_June2016.pdf : June 2016 revision
dc.owningcollname Business, Stephen M. Ross School of - Working Papers Series
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