Temperance in Stock Market Participation: Evidence from France

Arrondel, Luc; Calvo‐Pardo, Hector; Oliver, Xisco

doi:10.1111/j.1468-0335.2008.00733.x

Cited by 25 publications

(31 citation statements)

References 55 publications

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“…Stock market participation increases with age and more among those who are 40 or older (Alessieet al, 2004). Stock ownership is positively correlated with age of the household and it increases with age (Arrondel et al, 2010;Cardak and Wilkins, 2009;Faig and Shum, 2006;Iwaisako, 2009;Naudon et al, 2004;Sungur, 2003;Zhong and Xiao, 1995).…”

Section: Age and Stockholdingsmentioning

confidence: 99%

“…Gender has significant impact on stock market participation (Christiansen and Rangvid, 2008). Females invest fewer in stocks as compared to men (Arrondel et al, 2010;Barber and Odean, 2001;Embrey and Fox, 1997;Zhong and Xiao, 1995). Demographic variables like gender have limited but considerable impact on direct stockholding (Gardini and Magi, 2007).…”

Section: Gender and Stockholdingsmentioning

confidence: 99%

“…Income and wealth are strongly correlated to stock market participation (Christiansen and Rangvid, 2008). Stock market participation increases with an increase in income and wealth (Arrondel et al, 2010;Haliassos and Bertaut, 1995;Rooij et al, 2007;Shum and Faig, 2006). Stock ownership is positively correlated with wealth and income of households (Campbell, 2006;Guisoi and Jappelli, 2005;Shum and Faig, 2006).…”

Section: Income Wealth and Stockholdingsmentioning

confidence: 99%

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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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Section: Age and Stockholdingsmentioning

confidence: 99%

Section: Gender and Stockholdingsmentioning

confidence: 99%

Section: Income Wealth and Stockholdingsmentioning

confidence: 99%

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Limited Stock Investments in Pakistan

Ali¹,

Shafeeq²,

Ali³

2012

IJBM

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“…First, we estimate our model of the share of the portfolio invested in alternative assets with panel data, which allows us to include time and entity fixed effects. The inclusion of time effects reduces the likelihood that the results are idiosyncratic to 6 Arrondel et al (2010) demonstrate that household portfolio investments are affected by the expected probability that the household will become liquidity constrained.…”

Section: Literature Reviewmentioning

confidence: 99%

What Do University Endowment Managers Worry About? An Analysis of Alternative Asset Investments and Background Income

Rosen

Sappington²

2016

Education Finance and Policy

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This paper examines whether university endowment managers think only in terms of the assets they manage, or also take into account background income, the other flows of income to the university. Specifically, we test whether the level and variability of a university's background income (e.g., from tuition and government grants) affect its endowment's allocations to so-called alternative assets such as hedge funds, private equity, and venture capital. We find that both the probability of investing in alternative assets and the proportion of the portfolio invested in such assets increase with expected background income and decrease with its variability.

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“…In this paper, as we are not able to …nd a signi…cant correlation between stocks and housing returns in France for the relevant period for the survey we use, we focus on the role of housing as a background risk 2 . Previous empirical investigations show that housing wealth crowds out stockholding (Cocco (2004), Saarimaa (2008), Yao and Zhang (2005), Yamashita (2003)).…”

Section: Introductionmentioning

confidence: 99%

Stockholding: Does Housing Wealth Matter?

Arrondel

Savignac

2009

SSRN Journal

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The existence of an equity premium puzzle has been largely emphasized in the empirical literature: one observes low risky assets holding that the standard portfolio choice model (with expected and discounting utility and homothetic preferences) is not able to explain. Besides modi…cations of rationality assumptions, other changes have been introduced in the standard framework to account for this equity premium puzzle: the existence of transaction costs, liquidity constraints or other risks (e.g. risks associated with employment, income, health,). These background risks (i.e. risks that are unavoidable, exogenous and independent from the …nancial market risk) may lead households to reduce their stockownership in order to limit their global exposure to risk. Recent developments examine the role of housing on stockholding as another background risk. This paper analyses the empirical link between stockholding and housing wealth within this framework. We use the French wealth survey (Enquête Patrimoine 2004, Insee) that gives us detailed information on households portfolio, socio-demographic variables, and several measures of preference and exposition to various risks (income, unemployment, health, and business). We …nd that an increase in the housing to net wealth ratio crowds out stock market investment for a given total …nancial wealth: when facing real estate exposure to risk, households tend to moderate their global exposure to risk by limiting the share of their …nancial wealth invested in stocks. Among the other signi…cant determinants of the equity premium puzzle, we emphasize the role of transaction and information costs, the attitude toward risk and the exposition to various risks in hampering investments in stocks.

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Temperance in Stock Market Participation: Evidence from France

Cited by 25 publications

References 55 publications

Limited Stock Investments in Pakistan

Limited Stock Investments in Pakistan

What Do University Endowment Managers Worry About? An Analysis of Alternative Asset Investments and Background Income

Stockholding: Does Housing Wealth Matter?

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