Social Interaction and Psychological Influence on Women's Financial Investments

Abstract

We study the relationship between some social interaction and depression factors on women's financial decisions. Using data from a new sample survey with a size of 3,901 women, we find that the probability of a woman invest in stocks is reduced by 0.8%, if she has felt depressed recently, and increased by 1.1%, if she visits frequently her family or friends. Moreover, when the investment opportunity is a savings account, depression symptoms reduce investment probability by 4% and if she visits family or friends the probability is increased by 11%. Also, if she practices any sport or frequent any health club the investment probability is increased by 7.9% and 6.6%, respectively. In the case of other investments, the investment probability is increased by 2%, 2.7% and 3% if she attends any religious services, any health club or belongs to any association, respectively.