In the last two decades, multiple attempts have been made to solve the ‘stock market participation puzzle’. With the help of bibliometric analysis, we explore the various dimensions of the existing research on stock market participation (SMP). The results of this paper systematically synthesize the knowledge base and the intellectual structure of SMP. The article reveals the motivation for an individual to invest in the stock market. The study contributes by identifying the most influential authors, countries, journals and organizations that publish research on SMP. It also identifies the most impactful articles and performs a co-citation network analysis. The results indicate three broad clusters summarizing the extant literature on SMP: cognitive abilities and skills-based studies, risks appetite and asset allocation-based studies and social capital-based studies. The study findings are more relevant for researchers, policymakers, financial regulators and discount brokers.
AkhterA., & SangmiM. U. D. (2015). Stock market awareness among the educated youth: A micro-level study in India. Vision, 19(3), 210–218. 10.1177/0972262915593661
2.
AlanS. (2006). Entry costs and stock market participation over the life cycle. Review of Economic Dynamics, 9(4), 588–611. 10.1016/j.red.2006.06.003
AroraJ., & ChakrabortyM. (2021). Does the ease of reading of financial disclosures influence investment decision?Economics Letters, 204, 109883. 10.1016/j.econlet.2021.109883
5.
BarberB. M., & OdeanT. (2001). Boys will be boys: Gender, overconfidence, and common stock investment. Quarterly Journal of Economics, 116(1), 261–292. 10.1162/003355301556400
6.
BarskyR. B., JusterF. T., KimballM. S., & ShapiroM. D. (1997). Preference parameters and behavioral heterogeneity: An experimental approach in the health and retirement study. Quarterly Journal of Economics, 112(2), 537–579. 10.1162/003355397555280
7.
BaschieriG., CarosiA., & MengoliS. (2021). The decision to go public and the IPO underpricing with locally biased investors. European Journal of Finance, 27(15), 1489–1532. 10.1080/1351847X.2021.1890632
8.
BazleyW. J., BonaparteY., & KorniotisG. M. (2021). Financial self-awareness: Who knows what they don’t know?Finance Research Letters, 38, 101445. 10.1016/j.frl.2020.101445
9.
BhaiswarR., MeenakshiN., & ChawlaD. (2021). Evolution of electronic word of mouth: A systematic literature review using bibliometric analysis of 20 years (2000–2020). FIIB Business Review, 10(3), 215–231. 10.1177/23197145211032408
10.
BhattacharjeeJ., SinghR., & PrajapatiK. (2020). Risk perception in respect of equity shares: A literature review and future research agenda. DLSU Business & Economics Review, 30(1), 1–14.
11.
Blajer-GołębiewskaA. (2021). Individual corporate reputation and perception of collective corporate reputation regarding stock market investments. PLoS One, 16(9), e0257323. 10.1371/journal.pone.0257323
12.
BöckermanP., ConlinA., & SventoR. (2021). Early health, risk aversion and stock market participation. Journal of Behavioral and Experimental Finance, 32, 100568. 10.1016/j.jbef.2021.100568
13.
BodnarukA., & OstbergP. (2009). Does investor recognition predict returns?Journal of Financial Economics, 91(2), 208–226. 10.1016/j.jfineco.2008.01.006
14.
BriggsJ., CesariniD., LindqvistE., & ÖstlingR. (2021). Windfall gains and stock market participation. Journal of Financial Economics, 139(1), 57–83. 10.1016/j.jfineco.2020.07.014
15.
BrownJ. R., IvkovićZ., SmithP. A., & WeisbennerS. (2008a). Neighbors matter: Causal community effects and stock market participation. Journal of Finance, 63(3), 1509–1531. 10.1111/j.1540-6261.2008.01364.x
16.
BrownJ. R., IvkovićZ., SmithP. A., & WeisbennerS. (2008b). Neighbors matter: Causal community effects and stock market participation. Journal of Finance, 63(3), 1509–1531. 10.1111/j.1540-6261.2008.01364.x
17.
CalvetL. E., CampbellJ. Y., & SodiniP. (2007). Down or out: Assessing the welfare costs of household investment mistakes. Journal of Political Economy, 115(5), 707–747. 10.1086/524204
CampbellJ. Y. (2014). Household finance. World development report 2015: Mind, society, and behavior (pp. 112–126). World Bank. 10.1596/978-1-4648-0342-0_ch6
20.
CavalliF., NaimzadaA., & PecoraN. (2022). A stylized macro-model with interacting real, monetary and stock markets. Journal of Economic Interaction and Coordination, 17(1), 225–257. 10.1007/s11403-021-00320-x
21.
ChenX., LiR., & WuX. (2021). Multi-home ownership and household portfolio choice in urban China. Journal of Housing and the Built Environment, 36(1), 131–151. 10.1007/s10901-019-09713-8
22.
ChristelisD., JappelliT., & PadulaM. (2010). Cognitive abilities and portfolio choice. European Economic Review, 54(1), 18–38. 10.1016/j.euroecorev.2009.04.001
23.
CoccoJ. F. (2005). Portfolio choice in the presence of housing. Review of Financial Studies, 18(2), 535–567. 10.1093/rfs/hhi006
24.
CoccoJ. F., GomesF. J., & MaenhoutP. J. (2005). Consumption and portfolio choice over the life cycle. Review of Financial Studies, 18(2), 491–533. 10.1093/rfs/hhi017
25.
De BakkerF. G., GroenewegenP., & Den HondF. (2005). A bibliometric analysis of 30 years of research and theory on corporate social responsibility and corporate social performance. Business & Society, 44(3), 283–317. 10.1177/0007650305278086
26.
EckN. J. Van., & WaltmanL. (2010). Software survey: VOSviewer, a computer program for bibliometric mapping. Scientometrics, 84(2), 523–538. 10.1007/s11192-009-0146-3
27.
EckN. J. Van., & WaltmanL. (January2023). VOSviewer manual. CWTS.
28.
EllegaardO., & WallinJ. A. (2015). The bibliometric analysis of scholarly production: How great is the impact?Scientometrics, 105(3), 1809–1831. 10.1007/s11192-015-1645-z
29.
Fernández-LópezS., DaoudiD., & Rey-AresL. (2022). Do social interactions matter for borrowing behaviour of the Europeans aged 50+?International Journal of Bank Marketing, 40(1), 27–49. 10.1108/IJBM-02-2021-0077
30.
FongJ. H., KohB. S. K., MitchellO. S., & RohwedderS. (2021). Financial literacy and financial decision-making at older ages. Pacific Basin Finance Journal, 65. 10.1016/j.pacfin.2020.101481
31.
Gallego-LosadaR., Montero-NavarroA., Rodríguez-SánchezJ. L., & González-TorresT. (2022). Retirement planning and financial literacy, at the crossroads. A bibliometric analysis. Finance Research Letters, 44(May2021). 10.1016/j.frl.2021.102109
32.
GhadwanA. S., MarhainiW., AhmadW., & HanifaM. H. (2022). Financial planning for retirement models: An integrative systematic review. Social Sciences & Humanities, 30(2), 879–900.
33.
GomesF., & MichaelidesA. (2005). Optimal life-cycle asset allocation: Understanding the empirical evidence. Journal of Finance, 60(2), 869–904. 10.1111/j.1540-6261.2005.00749.x
GongP., WenZ., XiongX., & GongC. M. (2021). When do investors gamble in the stock market?International Review of Financial Analysis, 74, 101712. 10.1016/j.irfa.2021.101712
36.
GrinblattM., KeloharjuM., & LinnainmaaJ. (2011). IQ and stock market participation. Journal of Finance, 66(6), 2121–2164. 10.1111/j.1540-6261.2011.01701.x
37.
GuisoL., & JappelliT. (2005). Awareness and stock market participation. Review of Finance, 9(4), 537–567. 10.1007/s10679-005-5000-8
38.
GuisoL., SapienzaP., & ZingalesL. (2004). The role of social capital in financial development. American Economic Review, 94(3), 526–556. 10.1257/0002828041464498
39.
GuisoL., SapienzaP., & ZingalesL. (2008). Trusting the stock market. Journal of Finance, 63(6), 2557–2600. 10.1111/j.1540-6261.2008.01408.x
40.
HeatonJ., & LucasD. (2000a). Portfolio choice and asset prices: The importance of entrepreneurial risk. Journal of Finance, 55(3), 1163–1198. 10.1111/0022-1082.00244
41.
HeatonJ., & LucasD. (2000b). Portfolio choice in the presence of background risk. The Economic Journal, 110(460), 1–26.
42.
HermanssonC., JonssonS., & LiuL. (2022). The medium is the message: Learning channels, financial literacy, and stock market participation. International Review of Financial Analysis, 79, 101996. 10.1016/j.irfa.2021.101996
43.
HongH., KubikJ. D., & SteinJ. C. (2004). Social interaction and stock-market participation. Journal of Finance, 59(1), 137–163. 10.1111/j.1540-6261.2004.00629.x
44.
IngaleK. K. (2022). Financial literacy and financial behaviour: A bibliometric analysis. Review of Behavioral Finance, 14(1), 130–154. 10.1108/RBF-06-2020-0141
JiangM., SunR., & ZhangB. (2022). Social networks and household financial decisions: Evidence from China. Journal of Applied Economics, 25(1), 58–92. 10.1080/15140326.2021.2007725
47.
KhanM. S. R., RabbaniN., & KadoyaY. (2021). Can financial literacy explain lack of investment in risky assets in Japan?Sustainability (Switzerland), 13(22), 12616. 10.3390/su132212616
48.
KimH., KimK. T., & HanS. H. (2021). Religious differences and households’ investment decisions. Journal of Financial Research, 44(4), 753–788. 10.1111/jfir.12260
49.
KongD., ChengY., & LiuS. (2021). Unexpected housing wealth appreciation and stock market participation. Journal of Housing Economics, 52, 101768. 10.1016/j.jhe.2021.101768
50.
LiW., SongC., XuS., & YiJ. (2022). High sex ratios and household portfolio choice in China. Journal of Human Resources, 57(2), 465–490. 10.3368/jhr.57.2.1217-9245R2
51.
LiuZ., YinY., LiuW., & DunfordM. (2015). Visualizing the intellectual structure and evolution of innovation systems research: A bibliometric analysis. Scientometrics, 103(1), 135–158. 10.1007/s11192-014-1517-y
52.
MalmendierU., & NagelS. (2011). Depression babies: Do macroeconomic experiences affect risk taking?Quarterly Journal of Economics, 126(1), 373–416. 10.1093/qje/qjq004
53.
MankiwN. G., & ZeldesS. P. (1991). The consumption of stockholders and nonstockholders. Journal of Financial Economics, 29(1), 97–112. 10.1016/0304-405X(91)90015-C
54.
MilevskyM. A., & YoungV. R. (2007). Annuitization and asset allocation. Journal of Economic Dynamics and Control, 31(9), 3138–3177. 10.1016/j.jedc.2006.11.003
55.
MosenhauerM., NewallP. W. S., & WalasekL. (2022). The stock market as a casino: Associations between stock market trading frequency and problem gambling. Journal of Behavioral Addictions, 10(3), 683–689. 10.1556/2006.2021.00058
56.
Naina, & GuptaK. (2022). Sentimental herding in stock market: Evidence from India. Vision. 10.1177/09722629221133239
57.
NiuG., WangQ., LiH., & ZhouY. (2020). Number of brothers, risk sharing, and stock market participation. Journal of Banking and Finance, 113. 10.1016/j.jbankfin.2020.105757
58.
OzikG., SadkaR., & ShenS. (2021). Flattening the illiquidity curve: Retail trading during the COVID-19 lockdown. Journal of Financial and Quantitative Analysis, 56(7), 2356–2388. 10.1017/S0022109021000387
59.
PakT. Y., & BabiarzP. (2018). Does cognitive aging affect portfolio choice?Journal of Economic Psychology, 66, 1–12. 10.1016/j.joep.2018.03.001
60.
PeressJ. (2005). Information vs. Entry costs: What explains U.S. stock market evolution?Journal of Financial and Quantitative Analysis, 40(3), 563–594. 10.1017/s0022109000001873
61.
RooijM. Van., LusardiA., & AlessieR. (2011). Financial literacy and stock market participation. Journal of Financial Economics, 101(2), 449–472. 10.1016/j.jfineco.2011.03.006
62.
SaldanhaD., MallikarjunappaT., & OwareK. M. (2023). Determinants of adaptive behaviour in stock market: A review. Vision, 1–13. 10.1177/09722629221148809
63.
SethiS. P., & TaksarM. (1988). A note on Merton’s ‘Optimum consumption and portfolio rules in a continuous-time model’. Journal of Economic Theory, 46(2), 395–401. 10.1016/0022-0531(88)90138-X
64.
ShiG. F., LiM., ShenT. T., & MaY. (2021). The impact of medical insurance on household stock market participation: Evidence from China Household Finance Survey. Frontiers in Public Health, 9. 10.3389/fpubh.2021.710896
65.
ShinM. (2021). Subjective expectations, experiences, and stock market participation: Evidence from the lab. Journal of Economic Behavior and Organization, 186, 672–689. 10.1016/j.jebo.2020.11.006
66.
ShinM. (2022). Endogenous participation, risk, and learning in the stock market. Macroeconomic Dynamics, 26(3), 649–681. 10.1017/S1365100520000346
67.
SubramanianK. (29January2022). Budget 2022: Time to build on momentum for equity participation. The Economic Times. https://economictimes.indiatimes.com/markets/stocks/news/budget-2022-time-to-build-on-momentum-for-equity-participation/articleshow/89196972.cms?from=mdr
68.
VaarmetsT., LiivamägiK., & TalpseppT. (2019). From academic abilities to occupation: What drives stock market participation?Emerging Markets Review, 39, 83–100. 10.1016/j.ememar.2019.04.004
69.
WhiteC. M. J. (March2014). Protecting the retail investor. Consumer Federation of America. https://www.sec.gov/news/speech/mjw-speech-032114-protecting-retail-investor
70.
YamoriN., & UeyamaH. (2022). Financial literacy and low stock market participation of Japanese households. Finance Research Letters, 44, 102074. 10.1016/j.frl.2021.102074
71.
YangM., Al MamunA., MohiuddinM., Ali Al-ShamiS. S., & ZainolN. R. (2021). Predicting stock market investment intention and behavior among Malaysian working adults using partial least squares structural equation modeling. Mathematics, 9(8), 873. 10.3390/math9080873
72.
YangQ., & WangX. (2021). Simulation of stock market investor behavior based on Bayesian learning and complex network. Journal of Intelligent and Fuzzy Systems, 40(2), 2481–2491. 10.3233/JIFS-189242
73.
YehT. M., & LingY. (2022). Confidence in financial literacy, stock market participation, and retirement planning. Journal of Family and Economic Issues, 43(1), 169–186. 10.1007/s10834-021-09769-1
74.
ZehraN. (2023). Household finance: A systematic literature review and directions for future research. Qualitative Research in Financial Markets, 15(5), 841–887. 10.1108/QRFM-11-2021-0186
75.
ZhangD., ZhangZ., & ManagiS. (2019). A bibliometric analysis on green finance: Current status, development, and future directions. Finance Research Letters, 29, 425–430. 10.1016/j.frl.2019.02.003
76.
ZhengW., LiB., HuangZ., & ChenL. (2022). Why was there more household stock market participation during the COVID-19 pandemic?Finance Research Letters, 46, 102481. 10.1016/j.frl.2021.102481
77.
ZhuT., & XiaoJ. J. (2022). Consumer financial education and risky financial asset holding in China. International Journal of Consumer Studies, 46(1), 56–74. 10.1111/ijcs.12643
