Are Economists More Likely to Hold Stocks?*

Christiansen, Charlotte; Joensen, Juanna Schrøter; Rangvid, Jesper

doi:10.1093/rof/rfm026

Cited by 170 publications

(63 citation statements)

References 37 publications

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“…4.1), several contributions lacking an observable measure of financial capabilities exploit this evidence and use respondents' demographics in order to capture their financial literacy. Corresponding proxies for financial sophistication used in the literature include (disposable) income and wealth (Dhar and Zhu 2006;Vissing-Jorgensen 2003;Calvet et al 2007Calvet et al , 2009) as well as age (Calvet et al 2007(Calvet et al , 2009Georgarakos and Pasini 2011), educational attainment (Christiansen et al 2008;Calvet et al 2007Calvet et al , 2009), professional status (Calvet et al 2009), and even IQ (Grinblatt et al 2011(Grinblatt et al , 2012. Likewise, both Chalmers and Reuter (2012) and Hackethal et al (2012) use subsets of these demographics to proxy for financial literacy in their analyses.…”

Section: Socio-demographic Proxiesmentioning

confidence: 99%

Financial literacy, financial advice, and financial behavior

2017

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In this survey, we review the voluminous body of literature on the measurement and the determinants of financial literacy. Wherever possible, we supplement existing findings with recent descriptive evidence of German households' financial literacy levels based on the novel Panel on Household Finances dataset, a large-scale survey administered by the Deutsche Bundesbank and representative of the financial situation of households in Germany. Prior research not only documents generally low levels of financial literacy but also finds large heterogeneity in financial literacy across the population, suggesting that economically vulnerable groups are placed at further disadvantage by their lack of financial knowledge. In addition, we assess the literature evaluating financial education as a means to improve financial literacy and financial behavior. Our survey suggests that the evidence with respect to the effectiveness of the programs is rather disappointing. We also review the role of individuals' financial literacy for the use of professional financial advice and assess whether expert intervention can serve as a substitute to financial literacy. We conclude by discussing several directions for future research.

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Section: Socio-demographic Proxiesmentioning

confidence: 99%

Financial literacy, financial advice, and financial behavior

2017

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“…Households with lower socio-economic status form more pessimistic beliefs about the distribution of stock returns and are less likely to invest in stocks [40]. In addition, change in educational status affects the likelihood of holding stocks and individuals who studied economics are more likely to hold stocks than otherwise identical investors [41]. Genetic factors are also considered in assimilating stock market participation.…”

Section: Stock Market Participationmentioning

confidence: 99%

Social Capital and Stock Market Participation via Technologies: The Role of Households’ Risk Attitude and Cognitive Ability

et al. 2018

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This article reviews the relation between social capital and stock market participation via new technology. Its purpose is to acquire a thorough understanding of the structural, relational, and cognitive aspects of social capital's influences and to recommend further empirical research ideas to the existing body of knowledge on household finance. It discusses the consideration of modern and highly technological platforms such as the internet stock market exchange platforms and applications. The stock market participation puzzle remains unsolved despite the progress in explaining the economic rationality behind investors decision making through behavioral finance. Furthermore, the researchers develop four propositions which can expound the existing relationship between social capital dimensions such as the structural, relational, and cognitive aspects and stock market participation of households. Doing so, we discuss the roles of risk attitude and the influence of cognitive ability such as financial awareness, financial literacy, and IQ (intelligence quotient) to enhance the existing body of knowledge. Practically, this article adds valuable ideas in solving the issue of limited participation not just in the stock market but in other financial markets through reflecting on the sociological and (green) technological concepts. Lastly, the implications for sustainable financial markets are elaborated.

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“…Surprisingly large fraction of households not invests in stocks and this limited participation of households in stock markets is quite puzzling (Christiansen and Rangvid, 2008). It is very puzzling that large portion of U.S. households holds very few or no stocks (Guo, 2001).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Age has significant impact on stock market participation (Bogan, 2008;Christiansen and Rangvid, 2008;Guiso et al, 2003;Hong et al, 2004;Rooij et al, 2007). Stock market participation increases with age and more among those who are 40 or older (Alessieet al, 2004).…”

Section: Age and Stockholdingsmentioning

confidence: 99%

See 1 more Smart Citation

Limited Stock Investments in Pakistan

Ali¹,

Shafeeq²,

Ali³

2012

IJBM

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It has been observed that people are less prone to invest in the stock markets and this effect is more prominent in developing countries like Pakistan. It's a common observation that people in Pakistan are more reluctant to buy the stocks of companies rather they think that it's better to invest in the real estate, start a business, deposit in bank saving accounts, or to buy gold. The purpose of conducting this study is to find the reasons behind this discouraged stockholdings in general public. A huge amount of literature had been reviewed to get a clear view of this issue in different countries and a questionnaire had been designed to get primary data from the local respondents to know their views about this limited stockholdings. It has been found that many demographic characteristics like age, gender, occupation, education and income have impact on the stockholdings. Awareness, financial literacy, social interaction, informational cost, participation cost and entry cost have also found to have an impact on the proportion of stockholdings. It is clear from the analysis that 65% of the respondents have never bought stocks. Several reasons have been highlighted for this limited stockholdings pattern among the individuals such as no money, lack of awareness and information about stock markets or investment in any other form.

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Are Economists More Likely to Hold Stocks?*

Cited by 170 publications

References 37 publications

Financial literacy, financial advice, and financial behavior

Financial literacy, financial advice, and financial behavior

Social Capital and Stock Market Participation via Technologies: The Role of Households’ Risk Attitude and Cognitive Ability

Limited Stock Investments in Pakistan

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