Education and stock market performance

Kristjan Liivamägi

No 19, TUT Economic Research Series from Department of Finance and Economics, Tallinn University of Technology

Abstract: In our recent work (Liivamägi, Vaarmets, & Talpsepp, 2014), we study how education and mental abilities affect investors’ risk adjusted performance on the stock market. We use a dataset from Tallinn stock exchange, covering stock market transactions from a full business cycle along with educational background details for all individual investors. Data are anonymous and provided by official national registries. Controlling for a variety of tradingrelated and socio-economic factors, we show that better mathematical skills and overall high mental abilities are associated with better risk adjusted performance. In addition, holding a higher degree or a university degree in economics or information technology helps to outperform other investors. Abstract in Estonian:Seosed hariduse ja investorite edukuse vahelKristjan LiivamägiAnalüüsides oma uurimistöös (Liivamägi, Vaarmets, & Talpsepp, 2014) hariduslike faktorite mõju investorite riskiga korrigeeritud tootlustele, suudame tuvastada need investorid, keda börsil tegutsedes saadab suurem edu. Investorite finantskäitumise analüüsimiseks kasutame andmekogumit, mis hõlmab nii anonüümseid Tallinna Börsi investorite tehinguid kui ka nende investoritega seotud hariduslikke andmeid. Oma uurimistöös jõudsime järeldusele, et paremaid tulemusi matemaatikas ning üldiselt kõrgemaid vaimseid võimeid näitavad investorid suudavad aktsiaturul oma varasid edukamalt kasvatada kui teised inimesed. Lisaks sellele selgub meie valimi põhjal, et kõrgemalt haritud ning ülikoolis majanduse või infotehnoloogia alal kraadi omavad investorid näitavad aktsiaturul kõrgemat riskiga korrigeeritud tootlust. Artikkel on PDF versioonis eesti keeles: vaatamiseks vali link Full Text: PDF

Date: 2014-10-01
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