Social Engagement and Stock Market Participation

Review of Finance, Forthcoming

68 Pages Posted: 28 Aug 2012 Last revised: 6 Feb 2014

See all articles by Frederick Kibon Changwony

Frederick Kibon Changwony

University of Stirling - Department of Accounting and Finance

Kevin Campbell

University of Stirling - Stirling Management School

Isaac T. Tabner

University of Stirling - Accounting and Finance Division

Date Written: January 31, 2014

Abstract

We investigate the separate and joint influences of social engagement measures on stock market participation and find that socially engaged individuals are more likely to participate. Consistent with Granovetter’s (1973) theory of social networks we find that a weak tie (measured by social group involvement) has a positive effect on stock market participation whereas a strong tie (measured by frequency of talking to neighbours) has no effect. More trusting individuals are more likely to participate in the stock market, as are those who identify with a political party. In contrast, the degree to which religion is important appears to have little impact.

Keywords: Stock Market Participation, Social Engagement, Household Finance

JEL Classification: A13, D12, D72, G11, Z12

Suggested Citation

Changwony, Frederick Kibon and Campbell, Kevin and Tabner, Isaac T., Social Engagement and Stock Market Participation (January 31, 2014). Review of Finance, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2136734 or http://dx.doi.org/10.2139/ssrn.2136734

Frederick Kibon Changwony (Contact Author)

University of Stirling - Department of Accounting and Finance ( email )

Stirling, Scotland FK9 4LA
United Kingdom
(44) 1786 467328 (Phone)

Kevin Campbell

University of Stirling - Stirling Management School ( email )

Stirling Management School
Division of Accounting and Finance
Stirling, Scotland FK9 4LA
United Kingdom
(44) 1786 467280 (Phone)
(44) 1786 467308 (Fax)

Isaac T. Tabner

University of Stirling - Accounting and Finance Division ( email )

Accounting and Finance Division
University of Stirling
Stirling FK9 4LA, Scotland
United Kingdom
44 (0) 1786 467305 (Phone)
44 (0) 1786 467308 (Fax)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
115
Abstract Views
665
rank
296,515
PlumX Metrics