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Mathematical Problems in Engineering
Volume 2014, Article ID 906564, 9 pages
http://dx.doi.org/10.1155/2014/906564
Research Article

Social Interaction and Stock Market Participation: Evidence from China

1College of Management and Economics, Tianjin University, Tianjin 300072, China
2Academy of Mathematics and Systems Science, Chinese Academy of Sciences, Beijing 100190, China

Received 27 December 2013; Accepted 23 January 2014; Published 27 February 2014

Academic Editor: Fenghua Wen

Copyright © 2014 Zhifeng Liu et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

Current research on the impact of social interaction on the stock market participation only involves the traditional way of social interaction, and this paper further investigates the modern social interaction effects on the stock market participation and its activeness. The sample containing 150 Chinese counties is selected, and we apply grouping analysis and linear regression to conclude that social interaction has positive influence on the stock market participation and its activeness. Both traditional and modern social interaction ways affect the stock market participation and its activeness to the similar extent, so modern social interaction is of the same importance. Controlling for the respondents’ age, wealth, and education level, the above conclusion still holds.