Loved Ones Matter: Family Effects and Stock Market Participation

Jörgen Hellström (), Emma Zetterdahl () and Niklas Hanes ()
Additional contact information
Jörgen Hellström: Umeå School of Business and Economics, Postal: Umeå University, S 901 87 Umeå, Sweden
Emma Zetterdahl: Department of Economics, Umeå School of Business and Economics, Postal: Umeå University, S 901 87 Umeå, Sweden
Niklas Hanes: Department of Economics, Umeå School of Business and Economics, Postal: Umeå University, S 901 87 Umeå, Sweden

No 865, Umeå Economic Studies from Umeå University, Department of Economics

Abstract: In this paper new and detailed empirical evidence on the impact of family on individuals’ stock market participation decision is provided. Since influence is likely to vary systematically over different types of individuals the heterogeneous effect of social interaction, in a setting including both community as well as within-family effects, is further examined. The main results indicate that individuals’ likelihood for subsequent participation increases (decreases) following positive (negative) parental and partner stock market experiences. The effect of social interaction is further found to be of relatively greater importance for individuals with relatively lower levels of financial literacy and for individuals with an on average higher level of interpersonal trust. In terms of gender, both male and female participation is positively affected by family influence, while community effects mainly pertain to males.

Keywords: Family effects; Investor behavior; Peer effect; Social interaction; Social influence; Stock market participation (search for similar items in EconPapers)
JEL-codes: D83 G11 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2013-09-19
New Economics Papers: this item is included in nep-cbe, nep-cdm, nep-dem, nep-lam, nep-ltv, nep-neu and nep-soc
References: Add references at CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://www.econ.umu.se/DownloadAsset.action?conten ... Id=3&assetKey=ues865 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.econ.umu.se/DownloadAsset.action?contentId=221325&languageId=3&assetKey=ues865 [302 Found]--> http://www.econ.umu.se/ueslpnr/ues865.pdf)

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:hhs:umnees:0865

Access Statistics for this paper

More papers in Umeå Economic Studies from Umeå University, Department of Economics Department of Economics, Umeå University, S-901 87 Umeå, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by David Skog ().