Factors Influencing Stock Market Participation: A Review

Abstract

Purpose: The most pertinent source for generating wealth is to invest in stock market, however numerous studies have proved that there is low stock market participation. Hence, the extensive review of existing literatures on stock market involvement has been conducted to identify the various factors influencing stock market participation and also to identify the gap in this body of research. Approach: The current study is conducted with thorough analysis of the body of literature from numerous search engines, including Google Scholar, Scopus, Research Gate, etc. these gathered data on financial literacy, stock market participation, social inclusion and digital inclusion includes journal articles, working paper, reports, magazines, books and websites etc. In order to search the pertinent information for the study many keywords were used. Literatures were then divided into conceptual review, hypothetical relationship review, and theoretical review. Results/ Findings: Numerous studies have exposed that financial literacy and social inclusion significantly contribute to stock market participation, and also digitization promotes individuals involvement in the financial market. The extensive review directed a researcher towards low touched area under stock market participation i.e. to determine how literacy level on financial aspects and social inclusion will improve one’s involvement in the stock market, when it is mediated through digital inclusion. Originality/Value: This study will provide policy guidelines to Government, financial policy makers, practitioners and academician in the area of finance to encourage stock market participation by highlighting the sustainable inclusive growth through socialization and digitalization in order to generate wealth which again contributes to economic development of a country. Type of Paper: Literature Review

The peer effects of resident stock market participation: Evidence from 2019 CHFS

“…Combined with the mathematical calculation of this model and existing research literature, it can be proved that the bias of for residents’ income expectation ( θ ), financial knowledge spillover (C) and social deviation (S) are all greater than 0 (Park et al, 2017; Riha et al, 2022) [ 35 , 40 ] …”

“…Qize et al’s (2022) [ 34 ] study shows that social interactions influence residents’ participation in the stock market, and ’relationships’ influence households’ participation in the stock market through information channels and social interactions. (Riha et al, 2022) [ 35 ]. Similarly, a greater degree of trust also encourages residents’ involvement in the stock market, as confidence in listed firms meaningfully increases participation rates.…”

“…ε 1 is the error term. The utility u t 1 of period t is mainly composed of three parts: the first part is the utility corresponding to the wealth change of individuals after participating in the stock market; the second part is the disutility brought by the transaction cost of individuals participating in the stock market; the third part is the disutility brought by the social deviation caused by the difference between the average situation of individuals participating in the stock market and their groups participating in the stock market (Riha et al, 2022) [ 35 ]. In this model, the utility function of the constant relative risk coefficient is used to describe the utility function caused by wealth change, and the current utility function of individual participation in the stock market is expressed as follows by combining the transaction cost and social deviation of stock market participation: …”

A SYSTEMATIC REVIEW ON FINANCIAL LITERACY & RETIREMENT PLANNING

“…Literatures review has broadly classified into three sections which includes conceptual review, theoretical review and hypothetical review [7]. In this study the researcher has referred 25 articles out of numerous articles considering the importance of content contained in the research which is reviewed as follows:…”

Factors Affecting Women Entrepreneurs’ Success: A Study of Small and Medium-Sized Enterprises - A Review

“…Aithal, P. S., has published the ABCD framework in the framework of firm analysis along with other publications, where even multiple articles namely, New Research Indices [208], Six Thinking Hats Based Analysis [209] Organizing the Unorganized Lifestyle Retailers [210] and others which have contributed to the bunch of different advantages, challenges, demerits, and constraints. Therefore, the researcher has adapted the ABCD framework as the measure of analysis to optimize and list out the various advantages, disadvantages, challenges, and benefits of the research proposal on women entrepreneurship and its positive and negative sides [211].  Students must be educated in launching self-owned businesses.…”