Women’s Bargaining Power and Household Stock Investment

This study investigates the effect of women’s bargaining power on household stock investment. Using data from the 2019 wave of the China Household Finance Survey (CHFS), this study finds that women’s bargaining power within the household was positively related to household stock investment. Specifically, we explored the mediating effects of financial information attention and the moderating effects of risk preference and financial literacy on the relationship between women’s bargaining power and household stock investment. The results show that women's bargaining power improved household stock investment indirectly by increasing the spouses’ attention to economic and financial information. We also find that wives’ risk preference and financial literacy intensified the positive effect of women’s bargaining power on household stock investment. The positive relationship between women’s bargaining power and household stock investment was relatively strong for below-median wealthy households. In addition, the effect of women’s bargaining power on household stock investment intensified with the increasing age of the wives. A discussion of the results and implications for policy making are included.