Information Sharing and Stock Market Participation: Evidence from Extended Families

Geng Li

The Review of Economics and Statistics, 2014, vol. 96, issue 1, 151-160

Abstract: Using the Panel Study of Income Dynamics, we document that controlling for observable characteristics, household investors' likelihood of entering the stock market within the ensuing five years is about 20% to 30% higher if their parents or children had entered the stock market during the previous five years. By eliminating competing hypotheses such as preference similarity and herding, we argue that these findings highlight the significance of information sharing regarding household financial decisions. © No rights reserved. This work was authored as part of the Contributor's official duties as an Employee of the United States Government and is therefore a work of the United States Government. In accordance with 17 U.S.C. 105, no copyright protection is available for such works under U.S. law.

Keywords: information sharing; stock market participation; extended families (search for similar items in EconPapers)
JEL-codes: D14 D83 G11 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (49)

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Working Paper: Information sharing and stock market participation: evidence from extended families (2009)
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