Subjective Quality of Life and Stock Market Participation of the Elderly: A Structural Equation Modelling Approach

Miha Dominko () and Miroslav Verbič
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Miha Dominko: Institute for Economic Research

Journal of Family and Economic Issues, 2020, vol. 41, issue 3, No 9, 505-519

Abstract: Abstract Using data from the Survey of Health, Aging and Retirement in Europe (SHARE), we studied the relationship between four quality of life domains (Control, Autonomy, Pleasure, and Self-realization) and stock market participation of the elderly in 13 European countries. We first assessed the psychometric properties of the CASP-12 scale used in SHARE and then proposed a structural equation model wherein quality of life affects stock market participation indirectly through its effect on trust and risk behavior. We found that risk preference had a greater effect on stock market participation than trust. Furthermore, our results indicated a consistent positive effect of the Self-realization domain and a negative effect of the Pleasure domain on stock market participation. Finally, the empirical results showed that the joint Control and Autonomy domain can have both a positive and a negative effect on stock market participation, depending on the country.

Keywords: Quality of life; Older people; Stock market participation; Structural equation modelling; Psychometric properties (search for similar items in EconPapers)
JEL-codes: G11 I00 I31 J14 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s10834-020-09673-0

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