When Paper Losses Get Physical: Domestic Violence and Stock Returns

68 Pages Posted: 21 Jan 2018 Last revised: 13 Oct 2020

See all articles by Tse-Chun Lin

Tse-Chun Lin

The University of Hong Kong - Faculty of Business and Economics

Vesa Pursiainen

University of St. Gallen

Date Written: March 4, 2020

Abstract

We find a significant negative relationship between stock returns during the week and the reported incidence of domestic violence during the weekend. Our findings suggest that wealth shocks caused by the stock market can affect stress levels within families, escalate arguments, and trigger violence. The effect of stock returns on reported domestic violence is primarily attributable to negative returns, and the incidence of domestic violence increases with the magnitude of loss. The effect also increases with local stock market participation. Using Google search volumes as an alternative proxy for the incidence of domestic violence yields similar results.

Keywords: domestic violence, intimate partner violence, stress, household, behavior

JEL Classification: D03, D14, D62, J12

Suggested Citation

Lin, Tse-Chun and Pursiainen, Vesa, When Paper Losses Get Physical: Domestic Violence and Stock Returns (March 4, 2020). Proceedings of Paris December 2020 Finance Meeting EUROFIDAI - ESSEC, Available at SSRN: https://ssrn.com/abstract=3103728 or http://dx.doi.org/10.2139/ssrn.3103728

Tse-Chun Lin

The University of Hong Kong - Faculty of Business and Economics ( email )

Pokfulam Road
Hong Kong
China

Vesa Pursiainen (Contact Author)

University of St. Gallen ( email )

Swiss Institute of Banking and Finance
Unterer Graben 21
St.Gallen, 9000
Switzerland

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

Paper statistics

Downloads
382
Abstract Views
2,171
rank
94,828
PlumX Metrics