| This paper mainly uses the data of China Urban Household Consumption and Finance Survey in 2010 and 2011 to study the influence of social interaction and risk attitudes on urban households' stock market participation.For social interaction,this paper constructs the endogenous interaction mechanism of social interaction measured by “whether there are friends and relatives working in the investment industry”,and the general level of social interaction measured by “gifts money expenditure ratio” and “finance information source” these three social interaction indicators.It is found that the endogenous interaction mechanism has a positive effect on the participation of the stock market.In addition,the general social interaction level has different effects on the participation of the stock market under the background of different stock market performances.Specifically,in the years when the stock market performed well,general social interaction level had a positive or insignificant effect on stock market participation.When the stock market performed poorly,it had a negative influence.The difference in this direction of effects result from the scenario interaction mechanism.For risk attitudes,this paper constructs “which project to invest” and the more exogenous variable “absolute risk aversion coefficient” two measures.The paper finds that the risk attitude measured by “which project to invest” has a significant impact on the probability of stock market participation probability and the ratio of stock value over total financial assets value.Specifically,the more risk-averse the family,the lower the probability of stock market participation and the degree of stock market participation.The risk attitude constructed with absolute risk aversion coefficients shows that when the stock market performed well in 2010,the family's risk aversion to losses was greater,and the probability of participation in the stock market and the degree of participation were smaller.When the performance of the stock market in 2011 was poor,the risk attitude constructed by absolute risk aversion coefficients had no significant effect on the probability of participation and participation in the stock market.This may be due to the poor performance of the stock market,the family has a higher risk perception of investment in the stock market,which tends not to participate in the stock market,so risk attitude as people's character is not significant. |
