Financial Literacy, Human Capital and Stock Market Participation in Europe: An Empirical Exercise under Endogenous Framework

Show simple item record

dc.contributor.author Ashok Thomas
dc.contributor.author Spataro, Luca
dc.date.accessioned 2018-05-10T04:25:31Z
dc.date.available 2018-05-10T04:25:31Z
dc.date.issued 2015
dc.identifier.uri http://hdl.handle.net/2259/986
dc.description.abstract Households’ stock market participation has significant effects on savings and on an economy’s financial development and performance. Yet participation into capital markets is limited and quite heterogonous both among and within several countries. This phenomenon represents an empirical puzzle whose understanding is rather incomplete. In this work we exploit a combination of datasets for 9 European countries and use different econometric specifications that allow to control for endogeneity of financial literacy and human capital, to assess the role of several variables in affecting the probability to participate in the stock market in year 2010. Besides socio-demographic variables, we find that financial literacy has a positive and significant effect on stock market participation, together with the level of human capital. Country level differences are explained by such institutional factors as the effectiveness of the education system, captured by the student-teacher ratio, and by the attractiveness of the stock markets, proxied by the pattern of sharpe-ratios. en_US
dc.language.iso en en_US
dc.publisher del Dipartimento di Scienze Economiche – Università di Pisa, en_US
dc.subject Stock Market Participation en_US
dc.subject Financial Literacy en_US
dc.subject European Countries en_US
dc.subject Endogenous framework en_US
dc.title Financial Literacy, Human Capital and Stock Market Participation in Europe: An Empirical Exercise under Endogenous Framework en_US
dc.type Other en_US


Files in this item

This item appears in the following Collection(s)

Show simple item record

Search DSpace


Browse

My Account