TY  - RPRT
        AU  - Henkel, Luca
AU  - Zimpelmann, Christian
        TI  - Proud to Not Own Stocks: How Identity Shapes Financial Decisions
        PY  - 2023/Jun/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 16246
        UR  - https://www.iza.org/publications/dp16246
        AB  - This paper introduces a key factor influencing households' decision to invest in the stock market: how people view stockholders. Using surveys we conducted with nearly 8,500 individuals from eleven countries, we document that a large majority of respondents view stockholders negatively – they are perceived as greedy, gambler-like, and selfish individuals. We then provide experimental evidence that such perceptions of identity-relevant characteristics causally influence decision-making: if people view stockholders more negatively, they are less likely to choose stock-related investments. 
Furthermore, by linking survey and administrative data, we show that negative perceptions strongly predict households' stock market participation, more so than leading alternative determinants. Our findings provide a novel explanation for the puzzlingly low stock market participation rates around the world, new perspectives on the malleability of financial decision-making, and evidence for the importance of identity in economic decision-making.

        KW  - identity
KW  - perceptions
KW  - stock market participation
KW  - financial decision-making
        ER  -