Media Exposure and Stock Market Participation

49 Pages Posted: 7 Apr 2020 Last revised: 12 Mar 2021

See all articles by Lin Hu

Lin Hu

Australian National University (ANU)

Kun Li

Australian National University (ANU)

Phong T. H. Ngo

Australian National University (ANU)

Date Written: March 12, 2021

Abstract

We use a novel instrument--the local lineup position of business channels--to show that media exposure from cable television increases equity participation by increasing awareness of the stock market for first-time investors. Economically, a one-standard deviation reduction in the lineup position of business channels increases viewership by 6%. Subsequently, the propensity to invest in the stock market increases by 8.8% for the full sample and rises to 21.3% for first-time investors induced into watching by variation in channel position. Media exposure also reduces the likelihood these first time investors exit, keeping them in the stock market for longer.

Keywords: media exposure, television, awareness, stock market participation

JEL Classification: G11, G14

Suggested Citation

Hu, Lin and Li, Kun and Ngo, Phong T. H., Media Exposure and Stock Market Participation (March 12, 2021). Available at SSRN: https://ssrn.com/abstract=3555813 or http://dx.doi.org/10.2139/ssrn.3555813

Lin Hu

Australian National University (ANU) ( email )

Canberra, Australian Capital Territory 2601
Australia

Kun Li

Australian National University (ANU) ( email )

Canberra, Australian Capital Territory 2601
Australia

Phong T. H. Ngo (Contact Author)

Australian National University (ANU) ( email )

RSFAS, College of Business and Economics
Australian National University
Canberra, Australian Capital Territory 0200
Australia
+61 2 6125 1079 (Phone)

HOME PAGE: http://cbe.anu.edu.au/people/rsfas/phong-ngo/

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