Determinants of Stock Market Participation
Copyright policy )Determinants of Stock Market Participation
AbstractThe low degree of stock market participation (SMP) is one of the big puzzles in finance. Numerous determinants have been proposed. We put these determinants into a structure that is derived from a standard static portfolio model. Then we discuss arguments put forward regarding specific SMP determinants and the empirical evidence that has been provided. The focus of our survey is on the identification of a causal impact of determinants on SMP via shocks. We summarize the evidence by suggesting established and likely SMP determinants and providing an outlook for future research and policy.
- Leibniz Association Germany
- German Institute for Economic Research Germany
- Kiel Institute for the World Economy Germany
- Humboldt-Universität zu Berlin Germany
return volatility, ddc:330, 330 Wirtschaft, stock market participation, G11, risk tolerance, G51, information, transaction costs
return volatility, ddc:330, 330 Wirtschaft, stock market participation, G11, risk tolerance, G51, information, transaction costs
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