Social Interaction and Stock Market Participation: Evidence from British Panel Data

AbstractTheory indicates that frictions (e. g., information and transaction costs) could account for the lower than expected stock market participation rates. This paper examines the hypothesis that there has been a fundamental change in participation and links this change to the reduction of these frictions by the advent of the Internet. Using panel data on household participation rates over the past decade, the results show computer/Internet using households raised participation substantially more than non-computer using households. The increased probability of participation was equivalent to having over $27,000 in additional household income or over two more mean years of education.

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Relationship between Social Interaction of Individual Investors and Stock Market Participation Decision among Secondary School Teachers from Nakuru County, Kenya

The International Journal of Business & Management ◽

10.24940/theijbm/2019/v7/i8/bm1908-065 ◽

2019 ◽

Vol 7 (8) ◽

Author(s):

Penina Chepkorir Langat ◽

Peter Kimutai Cheruiyot

Keyword(s):

Social Interaction ◽

Secondary School ◽

Stock Market ◽

Secondary School Teachers ◽

Individual Investors ◽

Market Participation ◽

School Teachers ◽

Participation Decision ◽

Stock Market Participation

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Social Interaction and Stock Market Participation: Evidence from China

Mathematical Problems in Engineering ◽

10.1155/2014/906564 ◽

2014 ◽

Vol 2014 ◽

pp. 1-9 ◽

Cited By ~ 1

Author(s):

Zhifeng Liu ◽

Tingting Zhang ◽

Xiaoguang Yang

Keyword(s):

Social Interaction ◽

Linear Regression ◽

Stock Market ◽

Interaction Effects ◽

Positive Influence ◽

Education Level ◽

Market Participation ◽

Similar Extent ◽

Stock Market Participation ◽

The Impact

Current research on the impact of social interaction on the stock market participation only involves the traditional way of social interaction, and this paper further investigates the modern social interaction effects on the stock market participation and its activeness. The sample containing 150 Chinese counties is selected, and we apply grouping analysis and linear regression to conclude that social interaction has positive influence on the stock market participation and its activeness. Both traditional and modern social interaction ways affect the stock market participation and its activeness to the similar extent, so modern social interaction is of the same importance. Controlling for the respondents’ age, wealth, and education level, the above conclusion still holds.

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Predicting Stock Market Investment Intention and Behavior among Malaysian Working Adults Using Partial Least Squares Structural Equation Modeling

Mathematics ◽

10.3390/math9080873 ◽

2021 ◽

Vol 9 (8) ◽

pp. 873

Author(s):

Marvello Yang ◽

Abdullah Al Mamun ◽

Muhammad Mohiuddin ◽

Sayed Samer Ali Al-Shami ◽

Noor Raihani Zainol

Keyword(s):

Social Interaction ◽

Stock Market ◽

Risk Tolerance ◽

Equation Modeling ◽

Market Participation ◽

Herding Behavior ◽

Working Adults ◽

Stock Market Participation ◽

Stock Market Investment ◽

Overconfidence Bias

The purpose of this study was to investigate the effects of risk tolerance, financial well-being, financial literacy, overconfidence bias, herding behavior, and social interaction on stock market investment intention and stock market participation among working adults in Malaysia. Adopting the cross-sectional design, this study collected quantitative data from a total of 349 respondents in an online survey via Google form link across various social media platforms. This study used the partial least squares structural equation modeling (PLS-SEM) approach to test the hypotheses. This study revealed the significant positive effects of risk tolerance, herding behavior, and social interaction on stock market investment intention. Stock market investment intention also had a significant effect on stock market participation. Stock market investment intention was also found to successfully mediate the relationships of risk tolerance and overconfidence bias with stock market participation. When it comes to stock market investment, the government and related authorities should focus on developing programs and policies that provide a financial safety net for investors and promote investment-related social platforms. This study linked risk tolerance, financial well-being, financial literacy, overconfidence bias, herding behavior, social interaction, stock market investment intention, and stock market participation. This is one of the few early attempts to address issues in light of the stock market investment participation among the working adults in a developing country.

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