Trusting the stock market
- 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
| Verfasserangaben: | Luigi Guiso, Paola Sapienza, Luigi Zingales |
|---|---|
| URN: | urn:nbn:de:hebis:30-23396 |
| Titel des übergeordneten Werkes (Deutsch): | Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 2005,27 |
| Schriftenreihe (Bandnummer): | CFS working paper series (2005, 27) |
| Dokumentart: | Arbeitspapier |
| Sprache: | Englisch |
| Jahr der Fertigstellung: | 2005 |
| Jahr der Erstveröffentlichung: | 2005 |
| Veröffentlichende Institution: | Universitätsbibliothek Johann Christian Senckenberg |
| Datum der Freischaltung: | 20.12.2005 |
| Freies Schlagwort / Tag: | Portfolio Choice; Stock Market Participation; Trust |
| GND-Schlagwort: | Aktienmarkt; Vertrauen; Portfolio Selection; Portfoliomanagement |
| HeBIS-PPN: | 197420222 |
| Institute: | Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS) |
| DDC-Klassifikation: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
| Lizenz (Deutsch): |  Deutsches Urheberrecht |
