European Stockholding: is there a gender gap?
DOI:
https://doi.org/10.22458/rna.v8i1.1711Keywords:
determinants, participation, stock market, europeans, gender, institutional factorsAbstract
This research analyzes the individual determinants of the decision to participate in the stock market in eight European countries - France, Germany, Italy, the Netherlands, Poland, Spain, Sweden and the United Kingdom, on a sample of 6,036 individuals, aged between 18-65 years. The data used in the empirical analysis comes from the study “The EU Market for Consumer Long Term Retail Saving Vehicles. Comparative Analysis of Products, Market Structure, Costs, Distribution Systems and Consumer Saving Patterns”, carried out by the European Commission in 2007. The main focus of this paper consists of analyzing the potential gender gap in stock market participation while it includes socioeconomic variables that have already been studied in the prior financial literature focused on other countries, as well as behavioral determinants that have not been analyzed in depth so far. The results highlight that stock market participation in the countries above mentioned. Issues positively related to this research involves: peoples age, being male, having university studies, income, influence of financial advice and willingness to risk; and a negatively related issue is seeking of financial advice and general trust. Besides, it is important the existence of institutional country factors that influence the investors’ attitudes toward stockholding.
References
Almenberg, J., & Dreber, A. (2015). Gender, Stock Market Participation and Financial Literacy. Economic Letters, 137, 140-142. doi: 10.1016/j.econlet.2015.10.009
Ampudia, M. (2013). Stockholding in Spain. Journal of the Spanish Economic Association, 4, 415-435.
Atkinson, A., & F. Messy (2012). Measuring Financial Literacy: Results of the OECD / International Networkon Financial Education (INFE) Pilot Study.OECD WorkingPapers on Finance, Insurance and Private Pensions, 15, OECD Publishing. doi:10.1787/5k9csfs90fr4-en.
Bajtelsmit, V. L., & Bernasek, A. (1996). Why do women invest differently than men? Financial Counselingand Planning, 7, 1-10.
Barber, B. M., & Odean, T. (2001). Boys Will Be Boys: Gender, Overconfidence, and Common Stock Investment. Quarterly Journal of Economics, 141,261-292.
Bartus, T. (2005). Estimation of marginal effects using margeff. Stata Journal, 5 (3), 309-329.
Bertocchi, G., Brunetti, M., & Torricelli, C. (2009). Marriage and Other Risky Assets: A Portfolio Approach. Journal of Banking & Finance, 35 (11), 2902-2915.
Bogan, V. (2008). Stock market participation and Internet. Journal of Financial and Quantitative Analysis,43(1), 191–212.
Campbell, J. Y. (2006). Household Finance. Journal of Finance, 61, 1553-1604.
Christiansen, C., Rangvid, J., & Joensen, J. S. (2010).Fiction or Fact: Systematic Gender Differences in Financial Investments? EFA 2007 Ljubljana Meetings Paper. doi: 10.2139/ssrn.948164.
Christiansen, C., Joensen, J. S., & Rangvid, J. (2010a).The effects of marriage and divorce on financial investments: learning to love or hate risk? Center for Research in Econometric Analysis of Time Series (CREATES), Research Paper, 2010-57.
Claessens, S., & Perotti, E. (2007). Finance and inequality: Channels and evidence. Journal of Comparative Economics, 35 (4), 748-773.
Cocco, J. F., Gomes, F. J., & Maenhout, P. (2005). Consumption and Portfolio Choice over the Life Cycle.Review of Financial Studies, 18, 491-533.
Constantinides, G. M., Donaldson, J., & Mehra, R. (2002). Junior Can’t Borrow: A New Perspective on the Equity Premium Puzzle. Quarterly Journal of Economics, 117 (1), 269–296.
Direr, A., & Visser, M. (2011). Portfolio choice and financial advice. Finance: revue de l’Association Française de Finance, 34, 35-64.
Dohmen, T., Falk, A., Huffman, D., Sunde, U., Schupp, J., & Wagner, G.G. (2011). Individual risk attitudes: Measurement, determinants and behavioral consequences. Journal of the European Economic Association, 9, 522-550.
Friedman, J., & Greenstein, R. (2003). Exempting Corporate Dividends from Individual Income Taxes, Center for Budget and Policy Priorities.
Georgarakos, D., & Inderst, R. (2011). Financial Advice and Stock Market Participation, European Central Bank, Working Paper, 1296. Retrieved from: http://www.ecb.europa.eu/pub/pdf/scpwps/ecbwp1296.pdf
Guiso, L., Haliassos, M., & T. Jappelli (2003). Household Stockholding in Europe: Where do we stand and where do we go? Economic Policy, 18 (36), 123-170.
Guiso, L., Sapienza, P., & Zingales, L. (2008). Trusting the stock market. Journal of Finance, 63, 2557-2600.
Guiso L., Sodini P. (2012). “Household Finance. Anemerging field” in Handbook of the Economics of Finance, 2 (1), 1397-1532.
Halko, M.-L., Kaustia, M., & Alanko, E. (2012). The gender effect in risky asset holdings. Journal of Economic Behavior and Organization, 83 (1), 66-81.
Jianakoplos, N. A., & Bernasek, A. (1998). Are Women more Risk Averse? Economic Inquiry, 36, 620-630.
Jouhikainen, H. (2010). Examining the association between personality traits and stock market participation - Evidence from Finnish university students. Master’s Thesis, N. 12300. Aalto University School of Economics.
Kaustia, M., & Torstila, S. (2011). Stock market aversion? Political preferences and stock market participation. Journal of Financial Economics, 100, 98-112.
Khorunzhina, N. (2011). Dynamic Stock Market Participation of Households. Copenhagen Business School. Retrieved from: http://mpra.ub.uni-muenchen.de/35310/
Laakso, E. (2010). Stock market participation and house hold characteristics in Europe, Master Thesis, N. 12385 Aalto University Library. Retrieved from: http://epub.lib.aalto.fi/en/ethesis/pdf/12385/hse_ethesis_12385.pdf
Love, D. A. (2010). The Effects of Marital Status and Children on Savings and Portfolio Choice. Review of Financial Studies, 23, 385-432.
Luotonen, N. (2009). Personal values and stock market participation – Evidence from Finnish university students. Master’s Thesis. N. 12221, Aalto University School of Economics. Retrieved from: https://aaltodoc.aalto.fi/bitstream/handle/123456789/353/hse_ethesis_12221.pdf?sequence=1
Lusardi, A., & Mitchell, O. (2007). Baby boomer retirement security: The role of planning, financial literacy, and housing wealth. Journal of Monetary Economics, 54, 205-224.
Malroutu, Y. L., & Xiao, J. J. (1995). Perceived adequacy of retirement income. Financial Counseling and Planning, 6, 17-23.
OCDE (2009). Pensions at a Glance 2009: Retirement- Income Systems in OECD Countries. OCDE, Paris.
Papke, L.E., & Wooldridge, J.M. (1996). Econometric Methods for Fractional Reponse Variables With an Application to 401(K) Plan Participation Rates. Journal of Applied Econometrics, 11, 619-632.
Pellicer, M. (2005). Education and Financial Market Participation. Padova University, Working Paper, 51.
Renneboog, L., Spaenjers, C. (2012). Religion, econo¬mic attitudes, and household finance, Oxford Economic Papers, 64 (1), 103-127. doi: 10.1093/ oep/gpr025
Sears, D., & Funk, C. (1991). The role of self-interest in social and political attitudes. Advances in Experimental Social Psychology, 24, 1-91.
Sundén, A., & Surette, B. (1998). Gender differences in the allocation of assets in retirement savings plans. American Economic Review, 88 (2), 207- 211.
Van Rooij, M., Lusardi, A., & Alessie, R. (2011). Financial literacy and stock market participation. Journal of Financial Economics, 101 (2), 449-472.
Vissing-Jorgensen, A. (2004). Perspectives on beha¬vioral finance: Does irrationality disappear with wealth? Evidence from expectations and actions. In M. Gertler & K. Rogoff (Ed), NBER Macroecono¬mics Annual 2003 (pp. 139-208), Cambridge: The MIT Press.
Downloads
Published
How to Cite
Issue
Section
License
Aquellos autores/as que tengan publicaciones con esta revista, aceptan los términos siguientes:
- Los autores/as conservarán sus derechos de autor y garantizarán a la revista el derecho de primera publicación de su obra, el cuál estará simultáneamente sujeto a la Licencia de reconocimiento de Creative Commons que permite a terceros compartir la obra siempre que se indique su autor y su primera publicación esta revista.
- Los autores/as podrán adoptar otros acuerdos de licencia no exclusiva de distribución de la versión de la obra publicada (p. ej.: depositarla en un archivo telemático institucional o publicarla en un volumen monográfico) siempre que se indique la publicación inicial en esta revista.
- Se permite y recomienda a los autores/as difundir su obra publicada en la revista a través de Internet (p. ej.: en archivos telemáticos institucionales o en su página web).