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Happiness and Stock-Market Participation: Empirical Evidence from China

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  • Yulei Rao

    (Central South University)

  • Lixing Mei

    () (Central South University)

  • Rui Zhu

    (Central South University)

Abstract

Abstract Using the data from the China Household Finance Survey in 2011, we study the relation between happiness and stockholding. We find that a household’s propensity of investing in stocks or mutual funds, as well as household asset shares invested in stocks or mutual funds, is strongly associated with happiness. Moreover, empirical results suggest that among the three potential channels we propose, the association between happiness and stockholding is driven by trust (or social capital), rather than households’ risk preference or optimism level.

Suggested Citation

  • Yulei Rao & Lixing Mei & Rui Zhu, 2016. "Happiness and Stock-Market Participation: Empirical Evidence from China," Journal of Happiness Studies, Springer, vol. 17(1), pages 271-293, February.
  • Handle: RePEc:spr:jhappi:v:17:y:2016:i:1:d:10.1007_s10902-014-9594-4
    DOI: 10.1007/s10902-014-9594-4
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    References listed on IDEAS

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    1. repec:spr:jhappi:v:19:y:2018:i:6:d:10.1007_s10902-017-9890-x is not listed on IDEAS
    2. repec:gam:jsusta:v:10:y:2018:i:6:p:1904-:d:151130 is not listed on IDEAS

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