Subjective return expectations, information and stock market participation: evidence from France
Subjective return expectations, information and stock market participation: evidence from France
Recent research has separately uncovered that stock ownership strongly correlates with both expectations and realizations of stock market returns, as well as with measures of financial literacy, ability or trust. This paper reconciles all, and reports new findings from a unique survey containing individual level data on both expectations and (knowledge of) realizations for a representative sample by age and wealth. Stock market participation monotonically increases with the conditional expectation of a positive stock market return, even among the affluent and the young. Information is very heterogeneous, increases with age and own past experience, and identifies a causal effect of expectations on stock ownership.
University of Southampton
Arrondel, Luc
51a6cd5b-0df0-453f-b29e-09fd5dee03fa
Calvo-Pardo, Hector
07a586f0-48ec-4049-932e-fb9fc575f59f
14 March 2014
Arrondel, Luc
51a6cd5b-0df0-453f-b29e-09fd5dee03fa
Calvo-Pardo, Hector
07a586f0-48ec-4049-932e-fb9fc575f59f
Arrondel, Luc and Calvo-Pardo, Hector
(2014)
Subjective return expectations, information and stock market participation: evidence from France
(Discussion Papers in Economics and Econometrics, 1415)
Southampton, GB.
University of Southampton
58pp.
Record type:
Monograph
(Discussion Paper)
Abstract
Recent research has separately uncovered that stock ownership strongly correlates with both expectations and realizations of stock market returns, as well as with measures of financial literacy, ability or trust. This paper reconciles all, and reports new findings from a unique survey containing individual level data on both expectations and (knowledge of) realizations for a representative sample by age and wealth. Stock market participation monotonically increases with the conditional expectation of a positive stock market return, even among the affluent and the young. Information is very heterogeneous, increases with age and own past experience, and identifies a causal effect of expectations on stock ownership.
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Published date: 14 March 2014
Organisations:
Economics
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Local EPrints ID: 368212
URI: http://eprints.soton.ac.uk/id/eprint/368212
ISSN: 0966-4246
PURE UUID: 896fe901-9b47-4c05-bd6b-bfe68f0e7005
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Date deposited: 20 Aug 2014 15:44
Last modified: 15 Mar 2024 03:25
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Author:
Luc Arrondel
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