The Research About Effects Of Listed Companies' Irregularities On Household Stock Market Participation

For the past few years,household stock market participation has been one of the key fields of financial research.Exploring factors that affect the household stock market participation has significant implications for the country's introduction of financial and fiscal policies and deepening economic restructuring.With the rapid development of our country's capital market,irregularities of listed companies emerge in an endless stream,seriously harming the interests of investors and disturbing market order and thus restricting the further development of capital market.As a result,it is worthwhile to explore the characteristics of corporate irregularities and its impact on household stock market participation.Based on the survey data,this paper effectively combines macro and micro indices to investigate the influence of listed companies' irregularities on household stock market participation through qualitative and quantitative analyses.Firstly,related researches on household stock market participation and corporate irregularities are reviewed,laying the theoretical foundation for this article.Secondly,theoretical mechanism is established and research hypotheses are put forward.Thirdly,descriptive analysis on corporate irregularities and household stock market participation in China are conducted,qualitatively analyzing the influence of corporate irregularities on household stock market participation.Fourthly,the empirical model is built,applying the fixed effect model,the random effect model,LPM,Probit model and Logit model to the whole sample.It is worth mentioning that samples are divided on the basis of different areas and different individuals.Finally,conclusions are drawn from the empirical results and some suggestions for policy makers are put forward.The empirical results show as follows:?In the whole sample test,both the random effect model and fixed effect model suggest that corporate irregularities exert negative impact on household stock market participation.Based on LPM,Probit model and Logit model,it is found that corporate irregularities will reduce the probability of household stock market participation.?In the cross-section analysis of different regions,it is found that compared to the eastern regions,the central and western region residents react more intensely to corporate irregularities.?The analysis of individual differences shows that residents respond more violently to corporate irregularities if they have fraud experiences before.