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The motivation of the company stock investment by 401(k) Plan participants
|Issue Date: ||2019-07-01 10:44:46 (UTC+8)|
Prior literature uses the proportion of the company stock holdings over total investments of a 401(k) plan to measure the investment decision of plan participant. However, this measure may be altered by the return of the company stock. This study, therefore, proposes a new measure, the proportion of company stock contribution to the total contribution of a 401(k) plan to investigate the motivation of 401(k) plan participants to invest in company stock. Empirical results show that the portion of the company stock contribution is negatively associated with the operating performance, indicating that company employees tend to invest the company stock more when the company experiences difficulty in its operation. In addition, this study finds that the increased portion of the company stock contribution during the poor operating period can predict a better return for the company stock. This implies that participants may make the investment decision based on inside information which has a positive effect on the stock price.
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|Source URI: ||http://thesis.lib.nccu.edu.tw/record/#G0106357015|
|Data Type: ||thesis|
|Appears in Collections:||[財務管理學系] 學位論文|
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