Frontpage News 2013 Share purchases in...

Share purchases increase with marriage

9 December 2013

A new analysis by the Danish Bankers Association shows that Danes’ investment behavior depends on their marital status, ancestry or place of residence. 
The Danish Bankers Association has looked at specific background characteristics that may influence individuals' investment behavior, including the effect of marriage and living together and the difference among men and women.

Analysis: Do married women buy more shares? (in Danish) 

The analysis is based on a very detailed register-based panel data set and the results show that more Danes have shares when they are married or living with a partner than if they are single. This applies to both sexes.

"If we look at the investment profile, this is generally riskier for men than women. With marriage, men's part of shares in the free financial wealth falls, where women's risk appetite increases," says Chief Economist at the Danish Bankers Association, Niels Storm Stenbæk, and continues:
’’Several background characteristics are related to the individual’s investments choices. The participation on the stock market is thus positively connected with relations such as income, work experience, educational level and especially if one has studied economics. However, having children living at home pulls in a more negative direction.’’

Geographical and ethnicity related differences

The participation on the stock market and the risk appetite also vary among different ethnic groups. Generally speaking, almost one in four ethnic Danes have shares, where this only counts for 15 percent of descendants and 8 percent of immigrants.
However, the picture is not the same in terms of the portfolio composition. Here, the risk appetite is highest among immigrants and their descendants.
"They have a larger proportion of their financial assets in more risky shares," explains Niels Storm Stenbæk.
Figure 1. Investment behaviour divided on ethnic group
Source: Statistics Denmark and own calculations
Note: Immigrants are characterised as people who are born abroad, while descendants are born in Denmark by immigrants.

How to find investors

The greatest participation in the stock market can be found in North and West Jutland and in North Zealand, where between 26-28 percent of the individuals in the Danish Bankers Association’s sample has a shareholding. Also, risk appetite is higher in North Zealand. In contrast, both the participation and capital stock is particularly low on Bornholm.
Figure 2. Stock market participation divided on regions
Source: Statistics Denmark and own calculations
Note: The participation rate is measured as the proportion of individuals with a shareholding.
Figure 3. Capital stock distributed on regions (risk appetite) 
Source: Statistics Denmark and own calculations
Note: The capital stock is measured as the proportion of shares of the free financial wealth.
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