| 来源类型 | Working Paper |
| 规范类型 | 报告 |
| DOI | 10.3386/w9250 |
| 来源ID | Working Paper 9250 |
| The Role of Company Stock in Defined Contribution Plans | |
| Olivia S. Mitchell; Stephen P. Utkus | |
| 发表日期 | 2002-10-03 |
| 出版年 | 2002 |
| 语种 | 英语 |
| 摘要 | This paper explores the risks and benefits of holding company stock in employer-sponsored defined contribution (DC) retirement plans. We address three questions: (1) What is the role and function of company stock in such plans? (2) Who might be affected by enhanced portfolio diversification in such plans? and (3) What mechanisms exist, or might be developed, to enhance portfolio diversification if more diversification were deemed useful? Firms offer company stock within DC plans in an effort to enhance economic performance, though evidence is mixed on productivity gains from stock ownership. We demonstrate that concentrated stock positions arise most often in larger firms' DC plans where sponsors direct employer contributions and restrict diversification. Stock concentration also arises because participants systematically underestimate the risk of employer stock and over-rely on its past performance in making investment decisions. In a retirement system with concentrated stock positions, there will always be some participants who forfeit DC plan savings to firm bankruptcy. Encouraging plan diversification mitigates this risk, but it could also induce some companies to redirect plan contributions to other forms of stock compensation or to replace stock contributions with cash compensation. We conclude by describing policy tools that might be used to encourage diversification and discuss conditions for their effective implementation. |
| 主题 | Financial Economics ; Financial Institutions ; Corporate Finance |
| URL | https://www.nber.org/papers/w9250 |
| 来源智库 | National Bureau of Economic Research (United States) |
| 引用统计 | |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/566863 |
| 推荐引用方式 GB/T 7714 | Olivia S. Mitchell,Stephen P. Utkus. The Role of Company Stock in Defined Contribution Plans. 2002. |
| 条目包含的文件 | ||||||
| 文件名称/大小 | 资源类型 | 版本类型 | 开放类型 | 使用许可 | ||
| w9250.pdf（337KB） | 智库出版物 | 限制开放 | CC BY-NC-SA | 浏览 | ||
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