التفاصيل البيبلوغرافية
| العنوان: |
Do Natural Disaster Experiences Limit Stock Market Participation? |
| المؤلفون: |
Bharath, Sreedhar T.1 (AUTHOR) sbharath@asu.edu, Cho, DuckKi2 (AUTHOR) duckki.cho@phbs.pku.edu.cn |
| المصدر: |
Journal of Financial & Quantitative Analysis. Feb2023, Vol. 58 Issue 1, p29-70. 42p. |
| مصطلحات موضوعية: |
*NATURAL disasters, *STOCK exchanges, *RISK aversion, *INVESTMENT risk, *DECISION making in investments, PARTICIPATION, HOUSEHOLDS & economics |
| الشركة/الكيان: |
UNITED States. Federal Emergency Management Agency |
| مستخلص: |
We examine whether natural disaster experiences affect households' portfolio choice decisions. Using data from the National Longitudinal Survey of Youth 1979, we find that adversely affected households are less likely to participate in risky asset markets. After a disaster shock, households become more risk-averse and lower their expectations on future stock market returns. Such conservative portfolio choices persist even after households relocate to less disaster-prone areas, consistent with risk preferences being altered by disaster experiences. Overall, our evidence suggests that transient but salient experiences can be an important factor in explaining the limited participation puzzle. [ABSTRACT FROM AUTHOR] |
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| قاعدة البيانات: |
Business Source Index |