Outline

Holdings Of Equity By Households In Austria Derived From Register Data – Compilation And Analytical Use

OECD Working Party on Financial Statistics Paris, 29.11.-1.12.2010

Based on a paper by Michael Andreasch, Pirmin Fessler and Martin SchürzPresented by Michael Andreasch ([email protected])

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Outline

• Motivation• Data (Data sources), Definitions and

Compilation • Results for Individuals• Comparison Survey Data and Register Data

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Work has been elaborated against the background …

• To date, research on household wealth has seldom focused on households´ business equity holdings

• Micro data allow both the compilation of macro data in the framework of financial accounts data and the analysis of distribution of wealth based on equity holdings

• Find a better understanding on the financial behaviour of companies determined by holdings of households

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Remaining financial wealth Quoted shares Other Equity excluding investment fund shares

Other Equity Holdings in the Financial Wealth of Householdsin % of GDP; Macro data in the financial accounts and balance sheets.

Source: Statistics Austria, OeNB. Households including NPISHs. Other equity comprises holdings in domestic and foreign companies and real estate abroad.

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The Distribution Of (Other) Equity In Austrian Companies

3% of householdsown other equity

Other Equity: 6% of total financial assets

in comparison to:10-15% hold securities53% have life insurance contractsnearly 100% have saving accounts

in comparison to:22% are securities14% are life insurance contracts44% are saving accounts

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Importance of Equity

• From the perspective of distribution:Such equity holdings are highly concentrated even within this group of investor households, who are characterised by above-average income and wealth

• In view of the tightened refinancing conditions:A comprehensive grasp on equity proves particularly relevant

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Equity Holdings In The Financial Accounts DataData Sources

Holdings of listed and unlisted shares:• Securities by securities information system based

on custodian reports of domestic banks and direct reporting by end-investors (alternatively)

Other equity holdings (limited liability companies): • Company Register information on all enterprises

including nominal capital and distribution of holdings of owners as well as characteristics (like industry, place…)

• Commercial data base on individual capital components and other important items of the balance sheet

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Compilation

• Linkage of these data sources via the Company Register number

• Calculation of the nominal to total equity ratio for each company (even if it is negative)

• Equally distributed among all holders• For equity stakes that are recorded in the

Company Register only: we use the nominal capital

• For equity that is recorded in the commercial database only: exclusion from the compilation.

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Data On Equity In Austrian Limited Liability Companies1

Individualso 128,353 equity stakes traceable to individualso 105,471 persons in the data seto Average value of equity stakes: EUR 144,722o Median value of equity stakes: EUR 17,850

1 Data derived from the results of 2005.

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Distribution of Total Equity Stakes of Individuals1

o We sum up all equity stakes of an individualo Mean: 176,084 Euro ; Median: 19,350 Euroo Around 14% with negative valueso Around 5% with values over 500,000 Euro

representing 82% of the total volumeo Around 2,5% with values over 1 Million Euroo Top Values of more than one billion Euro

1 Data derived from the results of 2005.

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micro

small

mediumsizedlarge

other 1)

by size of corporations

Households Equity Stakes in Limited Liability Companies*

Source: OeNB. size: 1) mainly not classified yet, type of industry: 1) remaining 255 different industries. *2008 data due to preliminary results.

whole sale

holdingcompanies /head officesreal estateactivities

own-accountworking

other 1)

by type of industry

SME

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Motivation – In View Of The Ongoing Work Towards HFCS Ongoing work

Financial Accounts Data

Chronology

Survey on Financial Household Wealth 2004

Household Survey on Housing Wealth 2008

Equity Capital -Micro Data 2009

Household Finance & ConsumptionSurvey 2010

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Comparison with Survey Data – Descriptives

o Extremely low share of business equity interests

o No precise estimation possible(n=59)

o But how well is distrbution covered by the few observations resulting from the survey?

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Thank you for your attention