Information Sharing and Stock Market Participation: Evidence from Extended Families
The Review of Economics and Statistics
2014
Using the Panel Study of Income Dynamics, we document that controlling for observable characteristics, household investors' likelihood of entering the stock market within the ensuing five years is about 20% to 30% higher if their parents or children had entered the stock market during the previous five years. By eliminating competing hypotheses such as preference similarity and herding, we argue that these findings highlight the significance of information sharing regarding household financial decisions.
- DOI
- 10.1162/rest_a_00301
- Volume
- 96 (1)
- Pages
- 151-160
- Language
- en
- Export
- BibTeX
- Sources
- openalex crossref