Factors Influencing Stock Market Participation: A Review

Abstract

Purpose: The most pertinent source for generating wealth is to invest in stock market, however numerous studies have proved that there is low stock market participation. Hence, the extensive review of existing literatures on stock market involvement has been conducted to identify the various factors influencing stock market participation and also to identify the gap in this body of research. Approach: The current study is conducted with thorough analysis of the body of literature from numerous search engines, including Google Scholar, Scopus, Research Gate, etc. these gathered data on financial literacy, stock market participation, social inclusion and digital inclusion includes journal articles, working paper, reports, magazines, books and websites etc. In order to search the pertinent information for the study many keywords were used. Literatures were then divided into conceptual review, hypothetical relationship review, and theoretical review. Results/ Findings: Numerous studies have exposed that financial literacy and social inclusion significantly contribute to stock market participation, and also digitization promotes individuals involvement in the financial market. The extensive review directed a researcher towards low touched area under stock market participation i.e. to determine how literacy level on financial aspects and social inclusion will improve one’s involvement in the stock market, when it is mediated through digital inclusion. Originality/Value: This study will provide policy guidelines to Government, financial policy makers, practitioners and academician in the area of finance to encourage stock market participation by highlighting the sustainable inclusive growth through socialization and digitalization in order to generate wealth which again contributes to economic development of a country. Type of Paper: Literature Review