Work

Impact of banking penetration on stock market participation: A district-level analysis

Year: 2025

Type: article

Abstract: This paper examines the impact of increasing bank branches in a district on the stock market participation of households. Using household-level data from the 70 th and 77 th rounds of the National Sample Surveys, we find that households’ decision to participate in the stock market increases significantly when the number of bank branches in their district increases. The subsample analysis shows that an increase in bank branches has a greater impact in rural areas than urban areas. Also, OBC families and household heads with graduate-level or higher education are the primary beneficiaries of increased banking services on stock market participation.

Source: IIMB Management Review

DOI: 10.1016/j.iimb.2025.100616

Authors: Mahika Gandhi, Debasis Rooj, Reshmi Sengupta

Institutions: Johns Hopkins University, Johns Hopkins University School of Advanced International Studies, Flame University

Language: English

Topic: Financial Literacy, Pension, Retirement Analysis

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: gold

Estimated APC paid: $1,200

OpenAlex ID: W4415354679

FWCI:

Cites: 26

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