This paper analyzes the determinants of stock market participation decisions using officially compiled aggregate stock account opening data in China. Different from the literature that often focuses on one particular dimension, our paper systematically evaluates the relative importance of disposable income, demographic variables, macroeconomic factors, stock market conditions, and social communication on both the level and the change of the participation rate. We find that the level of the participation rate is predominately determined by the income factor, followed by various measures of social communication. Social communication plays the most important role in the change of the participation rate, acting as a multiplier to stimulate stock market participation. The effects are more pronounced in high income, high education, high population density groups, and during the bull market period.
This paper investigates whether household beliefs on the determinants of success affect their stock market participation decisions. Using national survey data from China, I show that Chinese households believe that personal effort is the most influential factor in people’s success, followed by family social connections, aptitude, and luck. Moreover, households that believe more in effort are less likely to participate in the stock market, while those who place more emphasis on family social connections are more likely to participate. The negative (positive) effects of effort (family social connections) are more profound for agricultural (workplace-affiliated) households. Further, I offer belief mechanisms to explain the heterogeneity of stock market participation for different occupations.
本文在先前文献的基础上，考虑到二元体制对中国城乡收入差距的决定性意义，引入城镇内收入差距的概念。文章运用中国31个省级行政单位1991–2008年的面板数据，分别对金融发展与城乡间、城镇内收入差距之间的关系进行了实证研究。结果显示，不论是城乡间还是城镇内，金融发展对收入差距的影响均存在倒U型的库兹涅茨效应。基于1997–2012年城乡财产性收入数据的研究也具有一致性。本文实证结果支持了Greenwood and Jovanovic (1990)所提出的门槛理论，即收入差距的扩大并非因为金融发展不具有正外部性，而是因为贫困者无法享受到此类福利。本文建议相关的制度设计应更加关注农村居民和低收入者。
More trading is algorithmic or computer generated, and in markets where it is allowed, high&nbsp;frequency. However, what happens when there is an algorithmic trading error? This study&nbsp;attempts to answer that question by examining the August 16, 2013, fat-finger trade in Chinese&nbsp;equity and equity futures markets. We find that both markets were excessively volatile, illiquid,&nbsp;and positively skewed. Moreover, we document that index returns are predictable for a shorttime, indicating that the fat-finger event induced an inefficient market. Our results highlight&nbsp;the importance of market surveillance and regulation to lessen the damage of future fat-finger&nbsp;events.
We examine the role of demographics and family/social interaction in Chinese household finance. The&nbsp;impacts of demographic characteristics are not limited to stock market participation, but extend to other&nbsp;financial activities. Households with strong family and social interaction are more likely to save, invest in&nbsp;risky assets and borrow. Family interaction is positively related to informal financing.
This paper extends the current literatures on the relation between fund expenses and fund flows&nbsp;using data from Taiwan. Our findings for the Taiwan market differ from previous studies on the&nbsp;U.S. market. Specifically, we find no support for the notion of “out of sight, out of mind”. For&nbsp;Taiwan mutual funds, net flows and inflows are negatively related to operating expenses but&nbsp;not front-end loads. The discrepancy between our results and those reported for the U.S. market&nbsp;may be attributed to the fee structure in Taiwan, where operating expenses are much higher&nbsp;than front-end loads and seem to have a bigger impact on fund performance. The negative relation&nbsp;between net flows (inflows) and operating expenses is more pronounced for funds with high&nbsp;institutional investor participation and funds charging high operating expenses. However, investor types show no significant impact on the relations between front-end loads and various&nbsp;measures of fund flows.