What Prevents People From Investing in the Stock Market?

Luca Henkel
Profile Picture of - Luca Henkel

Luca Henkel

Abstract information

Many people around the world do not invest in the stock market. In this video, LUCA HENKEL considers why this is the case, analyzing the image and opinion that people have of stock market investors. Surveying some 8000 individuals living in 11 countries, Henkel asks them about their views of stock market investors. In all countries, investors are viewed more negatively than non-investors. He then links these views to their investment decisions, showing that such views are predictive of investment behavior: the more negatively participants view stock investors, the less likely they themselves invest in the stock market. Identifying a heretofore neglected factor, Henkel’s work opens a path for policymakers to encourage more people to engage with the stock market.

DOI:

https://doi.org/10.21036/LTPUB101104

Researcher

Currently completing his doctoral research in economics at the University of Bonn, Luca Henkel will be a Postdoctoral Scholar at the University of Chicago and Universidad del CEMA in Fall 2023. In 2024, he will start as an Assistant Professor of Finance at the Erasmus University Rotterdam. Henkel’s research focuses on behavioral economics and household finance, where he examines determinants and consequences of financial and moral decision-making using experiments, surveys, and administrative data.

Institution information

University of Bonn (Rheinische Friedrich-Wilhelms-Universität Bonn)

The University of Bonn is one of Germany’s most prestigious and research-intensive institutions, consistently ranked among the top universities worldwide. Founded in 1818, it is celebrated for its academic excellence, particularly in mathematics and economics, and boasts a record of producing several Nobel Laureates and Fields Medalists. Located in the former German capital, the university is integrated into the city’s historic fabric, offering a vibrant international environment and a diverse range of programs across seven faculties. As a member of the elite U15 group, it remains a global leader in innovation and higher education.
University of Bonn (Rheinische Friedrich-Wilhelms-Universität Bonn)
Cover Photo of - University of Bonn (Rheinische Friedrich-Wilhelms-Universität Bonn)

Original Publication

Proud to not own stocks: How identity shapes financial decisions

Luca Henkel,

Christian Zimpelmann

Published in

Citation

Luca Henkel, 

Latest Thinking, 

What Prevents People From Investing in the Stock Market?, 

https://doi.org/10.21036/LTPUB101104, 

Credits:

© Luca Henkel 

and Latest Thinking

This work is licensed under CC-BY 4.0