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Do More Economists Hold Stocks?

  • Christiansen, Charlotte

    ()

    (Department of Accounting, Aarhus School of Business)

  • Joensen, Juanna Schröter

    ()

    (Department of Economics, University of Aarhus)

  • Rangvid, Jesper

    ()

    (Department of Finance, Copenhagen Business School)

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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Paper provided by University of Aarhus, Aarhus School of Business, Department of Business Studies in its series Finance Research Group Working Papers with number F-2005-02.

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Length: 39 pages
Date of creation: 23 Sep 2005
Date of revision:
Handle: RePEc:hhb:aarbfi:2005-02
Contact details of provider: Postal:
The Aarhus School of Business, Fuglesangs Allé 4, DK-8210 Aarhus V, Denmark

Fax: + 45 86 15 19 43
Web page: http://www.asb.dk/about/departments/bs.aspx

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