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Behavioral Determinants of Stock Market Participation

Matos, Adriana LU and Alimohammadisagvand, Behnaz LU (2012) NEKP02 20121
Department of Economics
Abstract
In this paper we present the effect of two behavioral factors, optimism and sociability, on stock market participation. We use novel measures of optimism and sociability based on the questions from the Survey of Health, Ageing and Retirement in Europe (SHARE). Our results show that both of these variables are significant and have a positive effect on stock market participation, controlling for risk aversion, wealth, age, education, and gender. Furthermore, risk aversion is found to have the largest effect on the probability of direct stock market participation. The analysis is conducted with a Probit model, and utilizes a sample composed of individuals fifty years of age and above.
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author
Matos, Adriana LU and Alimohammadisagvand, Behnaz LU
supervisor
organization
course
NEKP02 20121
year
type
H2 - Master's Degree (Two Years)
subject
keywords
stock market participation, optimism, sociability, risk aversion, SHARE data
language
English
id
2702129
date added to LUP
2012-06-08 14:56:25
date last changed
2012-06-08 14:56:25
@misc{2702129,
  abstract     = {In this paper we present the effect of two behavioral factors, optimism and sociability, on stock market participation. We use novel measures of optimism and sociability based on the questions from the Survey of Health, Ageing and Retirement in Europe (SHARE). Our results show that both of these variables are significant and have a positive effect on stock market participation, controlling for risk aversion, wealth, age, education, and gender. Furthermore, risk aversion is found to have the largest effect on the probability of direct stock market participation. The analysis is conducted with a Probit model, and utilizes a sample composed of individuals fifty years of age and above.},
  author       = {Matos, Adriana and Alimohammadisagvand, Behnaz},
  keyword      = {stock market participation,optimism,sociability,risk aversion,SHARE data},
  language     = {eng},
  note         = {Student Paper},
  title        = {Behavioral Determinants of Stock Market Participation},
  year         = {2012},
}