The Socioeconomic Determinants of Company-based Savings Plans Risk Exposure

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This paper investigates the relationship between the socioeconomic characteristics of 30,000 employees and the level of risk exposure employees have on their savings plans (company-based savings plans and employee stock purchase plans) in the banking sector. We explore three objectives. Our first objective is to describe the employee’s investment strategies in the savings plans offered to the employee according to individual characteristics. We use the Sharpe ratio as a measure of portfolio efficiency. Our second objective is to explore the correlation between human capital variables and the Sharpe ratio of individual portfolios. Our third objective is to explore which factors contribute to explain employees’ portfolio inefficiency, using a misspecification index.

Author(s):

Yacine Bekrar    
Toulon Univ
France

Nicolas Aubert    
Aix Marseille University & Inseec BS
France