More Households in the Stock Market Through Privatizations? Evidence from Italy

摘要: It is believed that privatizations substantially influenced both stock market structure and households’ portfolio decisions throughout the 1990s. However, through which channels did materialize? Using Bank of Italy SHIW data a unique set surveys made on occasion Public Offerings (POs) state owned companies during 1995-99, we test whether attracted new households to share investment by increasing potential investors’ knowledge risk/return characteristics via accompanying advertising campaigns. We show increased awareness each incoming PO, so fostered their propensity subscribe it. Furthermore, such also grew as became better informed about past perceived an improvement in institutional setting financial market, largely related privatizations. Thus, expanded participation Italy.