Guanxi, Stock Market Participation and Stock Return
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| Title | Guanxi, Stock Market Participation and Stock Return
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| Author | Zhu Guangwei，Du Zaichao and Zhang Lin |
| Organization | Research Institute of Economics and Management,Southwestern University of Finance and Economics |
| Email | amzgw007@126.com，duzc@swufe.edu.cn，zhanglin@swufe.edu.cn |
| Key Words | Guanxi; Stock Market Participation; Participation Depth; Stock Return |
| Abstract | Using 2011 China Household Finance Survey(CHFS) data, this paper studies the impact of Guanxi on stock market participation, participation depth and stock return. With the constructed multi-dimensional Guanxi index, we find that Guanxi significantly increases stock market participation and participation depth. Specifically, as Guanxi index increases by 1%, the probability of participating in stock market increases by about 0.2%; the participation depth increases by 0.7%. However, Guanxi has no significant influence on stock return. Moreover, we find that Guanxi can affect the stock market participation through the information channel and the social interaction channel. |
| Serial Number | WP688 |
| Time | 2014-09-09 |
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