Institutional Reform and Depositors' Portfolio Choice - Evidence from Bank Account Data
Michael Berlemann () and
Marc-André Luik ()
No 173/2016, Working Paper from Helmut Schmidt University, Hamburg
This paper studies the effect of institutional reform on the decision to hold risky assets at the example of the natural experiment of German Division and Reunification. We present empirical evidence indicating that even 16 years after German Reunification risky portfolio choice and composition differed systematically between East and West German bank customers, even after controlling for socio-demographic factors. While these differences are especially pronounced for bank customers with experiences in the former communist system, even the younger generation of East Germans still differs remarkably from their West German counterpart in terms of risky asset choice. Thus, informal institutions tend to have more long-lasting effects on portfolio behavior as previous studies seem to imply.
Keywords: Institutional reform; stockholding puzzle; portfolio choice; bank data (search for similar items in EconPapers)
JEL-codes: G21 O16 P36 (search for similar items in EconPapers)
Pages: 50 pages
New Economics Papers: this item is included in nep-ban
References: Add references at CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
http://www.hsu-hh.de/fgvwl/index_fBAAp3kwTPBtz6Vb.html Full text (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ris:vhsuwp:2016_173
Access Statistics for this paper
More papers in Working Paper from Helmut Schmidt University, Hamburg Contact information at EDIRC.
Bibliographic data for series maintained by Klaus Bekcmann ().