Religious beliefs and stock market participation: Evidence from urban households in China
Authors: Xu, Z., Ma, J., Li, D. and Fu, W.
Journal: Research in International Business and Finance
Volume: 63
ISSN: 0275-5319
DOI: 10.1016/j.ribaf.2022.101795
Abstract:This paper investigates how religious beliefs affect urban household stock market participation in China. We use the China Household Finance Survey in 2013 to show that religious beliefs inhibit total stock market participation and its increment. Such a negative effect is significant only for Buddhists and Protestants in China. We provide a new explanation from the perspective of expected utility maximization. Specifically, religious activities crowd out the time spent on improving financial literacy and lower the commercial insurance expenses that reduce risks in an individual's current life. Our results hold after considering the potential endogeneity problem and various robustness tests.
Source: Scopus
Religious beliefs and stock market participation: Evidence from urban households in China
Authors: Xu, Z., Ma, J., Li, D. and Fu, W.
Journal: Research in International Business and Finance
Volume: 63
Publisher: Elsevier
ISSN: 0275-5319
DOI: 10.1016/j.ribaf.2022.101795
Abstract:This paper investigates how religious beliefs affect urban household stock market participation in China. We use the China Household Finance Survey in 2013 to show that religious beliefs inhibit total stock market participation and its increment. Such a negative effect is significant only for Buddhists and Protestants in China. We provide a new explanation from the perspective of expected utility maximization. Specifically, religious activities crowd out the time spent on improving financial literacy and lower the commercial insurance expenses that reduce risks in an individual’s current life. Our results hold after considering the potential endogeneity problem and various robustness tests.
Source: Manual