Social interaction, Internet access and stock market participation—An empirical study in China

Liang, Pinghan; Guo, Shiqi

doi:10.1016/j.jce.2015.02.003

Cited by 126 publications

(86 citation statements)

References 52 publications

(50 reference statements)

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“…Last but not least, complementary to a conceptual paper like this present one, empirical studies are of equal importance [56,57]. Thus, we encourage future research to design and implement an empirical model that validates the main propositions in this article.…”

Section: Conclusion and Future Researchmentioning

confidence: 66%

Social Capital and Stock Market Participation via Technologies: The Role of Households’ Risk Attitude and Cognitive Ability

et al. 2018

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This article reviews the relation between social capital and stock market participation via new technology. Its purpose is to acquire a thorough understanding of the structural, relational, and cognitive aspects of social capital's influences and to recommend further empirical research ideas to the existing body of knowledge on household finance. It discusses the consideration of modern and highly technological platforms such as the internet stock market exchange platforms and applications. The stock market participation puzzle remains unsolved despite the progress in explaining the economic rationality behind investors decision making through behavioral finance. Furthermore, the researchers develop four propositions which can expound the existing relationship between social capital dimensions such as the structural, relational, and cognitive aspects and stock market participation of households. Doing so, we discuss the roles of risk attitude and the influence of cognitive ability such as financial awareness, financial literacy, and IQ (intelligence quotient) to enhance the existing body of knowledge. Practically, this article adds valuable ideas in solving the issue of limited participation not just in the stock market but in other financial markets through reflecting on the sociological and (green) technological concepts. Lastly, the implications for sustainable financial markets are elaborated.

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Section: Conclusion and Future Researchmentioning

confidence: 66%

Social Capital and Stock Market Participation via Technologies: The Role of Households’ Risk Attitude and Cognitive Ability

et al. 2018

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“…The literature discusses social communication as an important group of explanatory variables. Households tend to participate in the stock market when they are more active in their community (Hong et al., ), when investment knowledge and experience are shared among family members (Li, ), when local peers have better recent stock performance (Kaustia & Knüpfer, ), and when Internet access is feasible (Liang & Guo, ). In the light of the previous studies, we hypothesise that social interaction affects stock market participation positively.…”

Section: Resultsmentioning

confidence: 99%

“…Gao and Fok () show that households with strong family and social interaction are more likely to save, invest in risky assets and borrow. Liang and Guo () find that Internet access mitigates the influence of social interaction on stock market participation. Meanwhile, Kaustia and Knüpfer () show that recent stock returns of local peers affect stock market participation in Finland.…”

Section: Introductionmentioning

confidence: 99%

Income and social communication: The demographics of stock market participation

2019

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K E Y W O R D Sdisposable income, social communication, stock market participation | INTRODUCTIONChina's stock market has experienced tremendous growth over the past 20 years. It is now the largest market among developing countries and has significant impact on international financial markets. Compared to a more mature market, the nascent development stage of the Chinese market provides a unique opportunity to analyse people's participation decisions when a society as a whole encounters the market.This paper systematically evaluates the determinants of the new investors' participation decisions using the officially compiled account opening data at a monthly frequency and on the province level. Different from the literature that often focuses on one or a few dimensions, we evaluate the relative importance of as many dimensions as possible: disposable income, demographic variables, macroeconomic factors, stock market conditions, and social communication measures on both the level and the change of the participation decision. In addition to the standard variables, we introduce various social communication measures including the number of text messages and catering enterprises in a given province and stock market information gained through social communication. These measures are important because the Chinese stock market is dominated by retail investors, 1 whose information sources are very limited, and investing in the stock market is likely to be heavily influenced by social interactions in developing countries such as China, in which the operation of the society hinges on social relationships. As opposed to a more mature market, the rapid development of an economy and the stock market in developing countries attracts investors who possess little prior knowledge of the stock market (Bekaert, Harvey, & Lundblad, 2001), and social communication is an important channel for information exchange.We present several key findings: first, the level of participation rate is predominately determined by the income factor, followed by various measures of social communication. Second, 1 According to the China Capital Market Development Report by the China Securities Regulatory Commission, the proportion of retail investors whose total value of stock holdings and cash balances were below 100,000 RMB in their security account was 81% (90%) in the Shanghai (Shenzhen) Stock Exchange in 2007, respectively.

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“…To check whether online social networks can promote the household consumption expenditure through loan constraints mitigation, referred to the related literature [11], this paper utilizes the phased multiple linear regression model to conduct empirical analysis. The specific form of the model is as follows.…”

Section: ) Modelmentioning

confidence: 99%

Can Online Social Network Promote Residents’ Consumption<br/>—Proven by the Micro Data from 27,632 Chinese Households

Shi¹,

Wang²

2020

OJBM

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Our research aim is to analyze the impact of rural and urban households' online social network on their daily consumption, and tests the most important transmission mechanism-credit constraint mechanism in it, and we use the micro data sample of China Household tracking survey (CFPS) to achieve it. Furthermore, we compare the impact of formal finance and informal finance on household consumption's differences in response. The conclusion shows that: 1) online "group culture" has formed a new type of social capital in China, and has an impact on traditional social networks; 2) there are significant regional differences in the impact of online social networks on consumer credit; 3) the improvement of credit consumption is more driven by Internet technology, and the impact of formal financial institutions on consumer spending is declining. The impact of Internet technology innovation on the improvement of household credit consumption power is constantly improving, and more and more Chinese households get consumer credit support through online social networks.

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Social interaction, Internet access and stock market participation—An empirical study in China

Cited by 126 publications

References 52 publications

Social Capital and Stock Market Participation via Technologies: The Role of Households’ Risk Attitude and Cognitive Ability

Social Capital and Stock Market Participation via Technologies: The Role of Households’ Risk Attitude and Cognitive Ability

Income and social communication: The demographics of stock market participation

Can Online Social Network Promote Residents’ Consumption<br/>—Proven by the Micro Data from 27,632 Chinese Households

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Social interaction, Internet access and stock market participation—An empirical study in China

Cited by 126 publications

References 52 publications

Social Capital and Stock Market Participation via Technologies: The Role of Households’ Risk Attitude and Cognitive Ability

Social Capital and Stock Market Participation via Technologies: The Role of Households’ Risk Attitude and Cognitive Ability

Income and social communication: The demographics of stock market participation

Can Online Social Network Promote Residents’ Consumption&lt;br/&gt;—Proven by the Micro Data from 27,632 Chinese Households

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Can Online Social Network Promote Residents’ Consumption<br/>—Proven by the Micro Data from 27,632 Chinese Households