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Do More Economists Hold Stocks?

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  • Charlotte Christiansen
  • Juanna Shröter Joensen
  • Jesper Rangvid

    ()
    (Department of Economics, University of Aarhus, Denmark)

Abstract

A unique data set enables us to test the hypothesis that more economists than otherwise identical investors hold stocks due to informational advantages. We confirm that economists have a significantly higher probability of participating in the stock market than investors with any other education, even when controlling for several background characteristics. We make use of a large register-based panel data set containing detailed information on the educational attainments and various financial and socioeconomic variables. We model the stock market participation decision by the probit model. The results are shown to be highly robust to various assumptions, including unobserved individual heterogeneity

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File URL: ftp://ftp.econ.au.dk/afn/wp/05/wp05_06.pdf
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Bibliographic Info

Paper provided by School of Economics and Management, University of Aarhus in its series Economics Working Papers with number 2005-06.

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Length: 36
Date of creation: 08 Apr 2005
Date of revision:
Handle: RePEc:aah:aarhec:2005-06

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Web page: http://www.econ.au.dk/afn/

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Keywords: Investor Education; Portfolio Choice; Stock Market Participation;

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Cited by:
  1. Jørgensen, Peter Løchte & De Giovanni, Domenico, 2008. "Time Charters with Purchase Options in Shipping: Valuation and Risk Management," Finance Research Group Working Papers F-2008-05, University of Aarhus, Aarhus School of Business, Department of Business Studies.
  2. Høg, Esben, 2008. "Volatility and realized quadratic variation of differenced returns : A wavelet method approach," Finance Research Group Working Papers F-2008-06, University of Aarhus, Aarhus School of Business, Department of Business Studies.

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