Investors’ images of the stock market: Antecedents and consequences

Abstract

This research studies antecedents and consequences of stock market image, defined as the sum of impressions about the stock market. It seeks to understand how several personality-oriented, cognition-based, and demographic variables influence investors’ images of the stock market and how these images impact investing behaviors and outcomes. The findings from cross-sectional survey data suggest an individual’s financial literacy, propensity to trust, and sociability are important antecedents of his or her perceptions about the stock market. The data also show that stock market image affects investing motives, risk reduction efforts, emotional responses, and degree of satisfaction associated with investing.