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2022 Annual Conference

du 19 au 21 May 2022

Sheraton Sand Key, Clearwater Beach, FL, US

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Confirm your place in the schedule by going to the ACCI Presenter Confirm Google Sheet and marking your session with the name and email address of the author who will be attending and presenting. Each presentation must have a separate paid registraint. Contact the ACCI Office immedicately by email at admin@consumerinterests.org to report a conflict or if you have questions. Please be sure to reference the session title(s), date(s), and time(s) if you contact us.

B1a Factors That Impact Defined Contribution Equity Percentage: A Bayesian Model Averaging Approach

jeudi 19 mai 2022 à 17:15–18:45 EDT
Room 1
Key Words

risk, equity percentage, Baysian Model Averaging

Short Description

The impact that demographic and socioeconomic variables have on equity percentage, after risk preferences have been netted out, are analyzed using portfolio data from defined contribution (DC) plans. First, we regress DC equity percentage on investor risk preferences in order to obtain surrogate residuals. Second, we use a Bayesian Model Averaging approach to analyze the association between demographic variables and those surrogate residuals. Using cross-sectional data from Morningstar Associates that span the Great Recession, we find that age and the use of an allocation fund (e.g. target-date fund) are negatively associated with DC equity percentage. In addition, we find that the level of the S&P 500, DC deferral (savings) rate and salary are all positively associated with DC equity percentage.

Submitter

Michael Guillemette, Texas Tech University

Authors

Michael Guillemette, Texas Tech University
Donald Lacombe, Texas Tech University
David Blanchett, PGIM
Chargement en cours …