Who Are the Value and Growth Investors?

Laurent Calvet and Sebastien Betermier (sebastien.betermier@mcgill.ca)

No 1043, HEC Research Papers Series from HEC Paris

Abstract: This paper investigates the determinants of value and growth investing in a large administrative panel of Swedish residents over the 1999-2007 period. The authors document strong relationships between a household's portfolio tilt and the household's financial and demographic characteristics. Value investors have higher financial and real estate wealth, lower leverage, lower income risk, lower human capital, and are more likely to be female than the average growth investor. Households actively migrate to value stocks over the life-cycle and, at higher frequencies, dynamically offset the passive variations in the value tilt induced by market movements. The authors verify that these results are not driven by cohort effects, financial sophistication, biases toward popular or professionally close stocks, or unobserved heterogeneity in preferences. They relate these household-level results to some of the leading explanations of the value premium.

Keywords: Value premium; household finance; portfolio allocation; human capital (search for similar items in EconPapers)
JEL-codes: G11 G12 (search for similar items in EconPapers)
Pages: 66 pages
Date: 2014-04-19
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2426823 (application/pdf)

Related works:
Journal Article: Who Are the Value and Growth Investors? (2017)
Working Paper: Who Are the Value and Growth Investors? (2014)
Working Paper: Who are the value and growth investors? (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ebg:heccah:1043

Access Statistics for this paper

More papers in HEC Research Papers Series from HEC Paris HEC Paris, 78351 Jouy-en-Josas cedex, France. Contact information at EDIRC.
Bibliographic data for series maintained by Antoine Haldemann (haldemann@hec.fr).