Abstract

http://ssrn.com/abstract=1441512
 
 

References (54)



 
 

Citations (42)



 


 



IQ and Stock Market Participation


Mark Grinblatt


University of California, Los Angeles (UCLA) - Finance Area; Yale University - International Center for Finance; National Bureau of Economic Research (NBER)

Matti Keloharju


Aalto University - School of Business; Research Institute of Industrial Economics (IFN); Centre for Economic Policy Research (CEPR)

Juhani T. Linnainmaa


University of Chicago - Booth School of Business; National Bureau of Economic Research (NBER)

October 9, 2010

AEA 2010 Atlanta Meetings Paper
CRSP Working Paper
Western Finance Association 2010 Meetings Paper
Journal of Finance, Forthcoming
Chicago Booth Research Paper No. 09-27

Abstract:     
Stock market participation is monotonically related to IQ, controlling for wealth, income, age, and other demographic and occupational information. The high correlation between IQ, measured early in adult life, and participation, exists even among the affluent. Supplemental data from siblings, studied with an instrumental variables approach and regressions that control for family effects, demonstrate that IQ’s influence on participation extends to females and does not arise from omitted familial and non-familial variables. High-IQ investors are more likely to hold mutual funds and larger numbers of stocks, experience lower risk, and earn higher Sharpe ratios. We discuss implications for policy and finance research.

Number of Pages in PDF File: 56

Keywords: Intelligence, household finance, stock market participation

JEL Classification: G11, D14

Accepted Paper Series


Download This Paper

Date posted: August 2, 2009 ; Last revised: January 23, 2011

Suggested Citation

Grinblatt, Mark and Keloharju, Matti and Linnainmaa, Juhani T., IQ and Stock Market Participation (October 9, 2010). AEA 2010 Atlanta Meetings Paper; CRSP Working Paper; Western Finance Association 2010 Meetings Paper; Journal of Finance, Forthcoming; Chicago Booth Research Paper No. 09-27. Available at SSRN: http://ssrn.com/abstract=1441512

Contact Information

Mark Grinblatt
University of California, Los Angeles (UCLA) - Finance Area ( email )
Los Angeles, CA 90095-1481
United States
310-825-1098 (Phone)
310-206-5455 (Fax)
Yale University - International Center for Finance
Box 208200
New Haven, CT 06520-8200
United States
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Matti Keloharju
Aalto University - School of Business ( email )
P.O. Box 21210
AALTO, FI-00076
Finland
+358 40 353 8043 (Phone)
Research Institute of Industrial Economics (IFN) ( email )
Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden
Centre for Economic Policy Research (CEPR) ( email )
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
Juhani T. Linnainmaa (Contact Author)
University of Chicago - Booth School of Business ( email )
5807 S. Woodlawn Avenue
Chicago, IL 60637
United States
(773) 834-3176 (Phone)
(773) 753-1052 (Fax)
HOME PAGE: http://faculty.chicagobooth.edu/juhani.linnainmaa
National Bureau of Economic Research (NBER) ( email )
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Feedback to SSRN


Paper statistics
Abstract Views: 11,465
Downloads: 2,705
Download Rank: 2,067
References:  54
Citations:  42

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo8 in 0.266 seconds