| |
|
|
IZA
|
|
|
Social Interaction and Stock Market Participation: Evidence from British Panel Data
by
Sarah Brown, Karl Taylor
(April 2010)
Abstract:
This paper uses data from the British National Child Development Study to investigate the relationship between social interaction and participation in the stock market through holding stocks and/or shares at the individual level. In accordance with the existing literature, the results reveal that a positive relationship exists between social interaction and stock market participation, when both are measured concurrently. Furthermore, this relationship prevails across a range of measures of social interaction and social capital. In addition, we make a potentially important contribution to the existing literature by exploiting the panel nature of the data in order to explore the robustness of the cross-sectional findings. We find that the positive relationship between stock market participation and social interaction prevails within a fixed effects logit framework, which controls for time invariant unobserved effects.
Text: See Discussion Paper No. 4886 
|
| |
|
|
|
|