Gender Differences in Stock Market Participation: Evidence From Chinese Households

30 Pages Posted: 16 Mar 2021

See all articles by Ling Li

Ling Li

University of Cambridge - Department of Land Economy

shuyi lee

affiliation not provided to SSRN

Deming Luo

Zhejiang University

Date Written: January 29, 2021

Abstract

Using micro household survey data from China, this study finds that women are less likely to participate in the stock market than men. This gender pattern in market participation rates holds when we control for household features, characteristics of both spouses, and their interactions and relative decision-making power. We also show that the gender difference in stock market participation operates through investors’ behavioral factors, particularly their risk preference. Moreover, we confirm the influence of cultural gender norms among older households. The gender difference in stock market participation is reduced where women’s influence over the decision of stock investments is likely constrained by a male-biased social norm. The study’s findings suggest the crucial role of gender and gender-related cultural norms in shaping household financial decisions in the presence of gender inequality, such as in China. It extends our understanding of the interrelations between financial decisions and social and behavioral dimensions in a developing context.

Keywords: household finance, gender gap, risky assets, social norm

JEL Classification: D14, G11, J16

Suggested Citation

Li, Ling and lee, shuyi and Luo, Deming, Gender Differences in Stock Market Participation: Evidence From Chinese Households (January 29, 2021). Available at SSRN: https://ssrn.com/abstract=3775478 or http://dx.doi.org/10.2139/ssrn.3775478

Ling Li (Contact Author)

University of Cambridge - Department of Land Economy ( email )

19 Silver Street
Cambridge, CB3 9EP
United Kingdom

Shuyi Lee

affiliation not provided to SSRN

Deming Luo

Zhejiang University ( email )

38 Zheda Road
Hangzhou, Zhejiang 310027
China

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

Paper statistics

Downloads
79
Abstract Views
362
rank
372,894
PlumX Metrics