Seminar – Left Behind: Presidential Cycles and Partisan Gap in Stock Market Participation

Da Ke, Assistant Professor of Finance, University of South Carolina, Darla Moore School of Business 

Using longitudinal US household data, I document that Democrats are less likely than Republicans to participate in the stock market, controlling for education, income, wealth, and other relevant demographic characteristics. Importantly, the partisan gap in stock market participation widens sharply under Democratic presidencies, precisely when the stock market returns are substantially higher. This pattern accounts for over 40 percent of the discrepancy in wealth accumulation between Democrats and Republicans over presidential cycles. Overall, these findings underscore the interplay between individual ideology, household portfolio choice, and changing economic and political landscape.

Speaker bio

Da Ke is an Assistant Professor of Finance at the University of South Carolina, Darla Moore School of Business. He received his PhD in Finance from the University of Miami in 2017 and works on topics in household finance, behavioural finance, political economy, and asset pricing. Professor Ke’s current research investigates the roles of social norms as well as political landscapes in shaping household financial decisions. His work has been selected for inclusion in the American Finance Association, SFS Finance Cavalcade and Western Finance Association annual meetings.

Read the paper: Left Behind: Presidential Cycles and Partisan Gap in Stock Market Participation by Da Ke

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Meeting ID: 984 681 862