The influence of education, financial (education), and risk aversion on stock market participation
Keywords
Loading...
Authors
Issue Date
2024-07-10
Language
en
Document type
Journal Title
Journal ISSN
Volume Title
Publisher
Title
ISSN
Volume
Issue
Startpage
Endpage
DOI
Abstract
This study examines the effect of the level of education, and its interaction with financial literacy and risk aversion, on an individual’s willingness to participate in the stock market. Understanding these factors, and their influences, is essential for improving stock market participation. A Fixed Effects model was used, incorporating fixed effects for ID and year. The data is collected from the LISS (Longitudinal Internet studies for the Social Sciences) panel administered by Centerdata (Tilburg University, the Netherlands). The surveys measured the holding of assets by an individual, levels of education, financial literary, and risk aversion. The findings indicate that both the level of education, nor its interactions with financial literacy, and risk aversions have a significant influence on an individual’s willingness to participate in the stock market. Suggesting that other factors could have a more important function when it comes to influencing stock market participation. This research emphasises the complex nature of the factors influencing an individual’s stock market participation. Indicating that education, financial literacy, and risk aversion are not likely to be sufficient on their own. Future research should add more variable and interactions, in order to better understand the drivers of stock market participation.
Description
Citation
Supervisor
Faculty
Faculteit der Managementwetenschappen