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Financial Literacy and Low Stock Market Participation of Japanese Households

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  • Yamori, Nobuyoshi
  • Ueyama, Hitoe

Abstract

We investigated whether low financial literacy of Japanese households causes their low stock market participation. Based on our survey, we found that high financial literacy tends to increase stock market participation. We also found that households with higher financial literacy do not necessarily have a high shareholding ratio among financial assets.

Suggested Citation

  • Yamori, Nobuyoshi & Ueyama, Hitoe, 2022. "Financial Literacy and Low Stock Market Participation of Japanese Households," Finance Research Letters, Elsevier, vol. 44(C).
    • Handle: RePEc:eee:finlet:v:44:y:2022:i:c:s1544612321001550
    DOI: 10.1016/j.frl.2021.102074
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    References listed on IDEAS

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    1. Luc Arrondel & Majdi Debbich & Fr�d�rique Savignac, 2015. "Stockholding in France: the role of financial literacy and information," Applied Economics Letters, Taylor & Francis Journals, vol. 22(16), pages 1315-1319, November.
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    4. repec:hal:pseose:halshs-01203090 is not listed on IDEAS
    5. Li Liao & Jing Jian Xiao & Weiqiang Zhang & Congyi Zhou, 2017. "Financial literacy and risky asset holdings: evidence from China," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 57(5), pages 1383-1415, December.
    6. Zhong Chu & Zhengwei Wang & Jing Jian Xiao & Weiqiang Zhang, 2017. "Financial Literacy, Portfolio Choice and Financial Well-Being," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 132(2), pages 799-820, June.
    7. Almenberg, Johan & Dreber, Anna, 2015. "Gender, stock market participation and financial literacy," Economics Letters, Elsevier, vol. 137(C), pages 140-142.
    8. Nobuyoshi Yamori & Hitoe Ueyama, 2020. "Financial Literacy and Securities Investments: Based on the Results of "Survey on Wealth Building, Securities Investment and Financial Literacy"," Discussion Paper Series DP2020-08, Research Institute for Economics & Business Administration, Kobe University.
    9. Ashok Thomas & Luca Spataro, 2018. "Financial Literacy, Human Capital and Stock Market Participation in Europe," Journal of Family and Economic Issues, Springer, vol. 39(4), pages 532-550, December.
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    Cited by:

    1. Bongini, Paola & Cucinelli, Doriana & Soana, Maria Gaia, 2023. "Insurance holdings: Does individual insurance literacy matter?," Finance Research Letters, Elsevier, vol. 58(PC).
    2. Nave, Juan M. & Oliva, Laura & Toscano, David, 2023. "Financial knowledge and financial behaviour: The moderating role of home ownership," Finance Research Letters, Elsevier, vol. 57(C).
    3. Aman, Hiroyuki & Motonishi, Taizo & Ogawa, Kazuhito & Omori, Kozo, 2024. "The effect of financial literacy on long-term recognition and short-term trade in mutual funds: Evidence from Japan," International Review of Economics & Finance, Elsevier, vol. 89(PB), pages 762-783.
    4. Yin, Zhichao & Liu, Jiayi & Wang, Yumeng, 2023. "Fertility policy and stock market participation: Evidence from the universal two-child policy in China," International Review of Financial Analysis, Elsevier, vol. 86(C).
    5. Yi Jiang & Shohei Shimizu, 2024. "Does Financial Literacy Impact Investment Participation and Retirement Planning in Japan?," Papers 2405.01078, arXiv.org.

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