Stock Market Literacy, Trust, and Participation
By Adnan Balloch, Anamaria Nicolae, Dennis Philip. 2015
158 citations recorded by the source corpus.
This article studies the importance of stock market literacy and trust for stock ownership decisions. We find that these two distinct channels simultaneously explain not only the probability of participation, but, conditional on participation, also explain the share of investment in stocks. Once we account for stock market literacy, sociability is no longer significant for participation; what matters is literacy rather than sociability. Further, we observe that economic shocks and future expectations are key behavioral characteristics that explain a household’s decision to invest in stocks. However, upon participation, a larger set of behavioral characteristics explains the level of stock investment.
Subfields: Accounting, Economics and Econometrics, Finance
View Paper: https://www.semanticscholar.org/paper/6527450d35dfab11863cd912282894ff27426440
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Citations in the corpus
- Financial literacy, financial advice, and financial behavior (2017, background): “Panel A lists the available surveys for Germany, Panel B contains European household surveys and Panel C (Panel D) refers to surveys conducted in the U.S. (in other countries).”
- Financial literacy and fraud detection* (2019, unknown): “, 2011; Yoong, 2011; Balloch et al., 2015) and better equipped to face macroeconomic shocks such as the financial crisis (Klapper & Panos, 2013). Previous literature on consumer fraud identify certain risk factors and social contexts associated with victimization. Van Wilsem (2011) observes that peo”