TY  - UNPD
A1  - Guiso, Luigi
A1  - Sapienza, Paola
A1  - Zingales, Luigi
T1  - Trusting the stock market
T2  - Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 2005,27
N2  - We provide a new explanation to the limited stock market participation puzzle. In deciding whether to buy stocks, investors factor in the risk of being cheated. The perception of this risk is a function not only of the objective characteristics of the stock, but also of the subjective characteristics of the investor. Less trusting individuals are less likely to buy stock and, conditional on buying stock, they will buy less. The calibration of the model shows that this problem is sufficiently severe to account for the lack of participation of some of the richest investors in the United States as well as for differences in the rate of participation across countries. We also find evidence consistent with these propositions in Dutch and Italian micro data, as well as in cross country data. Klassifikation: D1, D8
T3  - CFS working paper series - 2005, 27 
KW  - Stock Market Participation
KW  - Trust
KW  - Portfolio Choice
KW  - Aktienmarkt
KW  - Vertrauen
KW  - Portfolio Selection
KW  - Portfoliomanagement
Y1  - 2005
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/3057
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30-23396
ER  -