Applying Stock Market Image Theory in China: Antecedents, Dimensions, and Consequences in the Middle Kingdom

Abstract

This empirical study explores Chinese Mainland investors’ stock market image, as well as its antecedents and consequences. Stock market image theory, proposed by Dobni and Racine (2015, 2016), argues that personality, cognitive, and demographic variables impact investors’ image of the stock market, consequently impacting their investing motives and behaviors. This study asks the question: What factors influence Chinese investors’ image of the stock market? This quantitative study, based on surveys of 171 respondents, finds a strong relationship between Chinese investors’ inclinations to invest and to save for retirement and their perception of the stock market’s wealth-creating capacity.