Social interactions and Chinese households’ participation in the risky financial market

Qize Li, Dirk Brounen, Jianjun Li and Xu Wei

Finance Research Letters, 2022, vol. 49, issue C

Abstract: This paper explores how social interactions affect households' financial investment. Employing the data from the 2018 China Family Panel Studies (CFPS), we construct two indices of social interactions and find that social interactions are positively related to households’ participation in risky financial market. Furthermore, this effect is more pronounced among households with limited channels of obtaining information, such as those who have an older age or a lower level of education, and less pronounced for households who mainly depend on the internet to obtain information. Our results suggest that social interactions may have an effect by providing more related information.

Keywords: Social interactions; Financial market participation; Information (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612322003658
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:49:y:2022:i:c:s1544612322003658

DOI: 10.1016/j.frl.2022.103142

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().