Seminar (Dept. of Finance)

Title: The indirect cost of stock market participation: Evidence from medical outcomes

Speaker: Yuan Ren, Assistant Professor and ZJU100 Young Professor, School of Economics, Zhejiang University

Time: 10:00-11:30, April 19, 2024(Friday)

Venue: Room 1008, Mingde Business Building

Language: Chinese&English

ABSTRACT:

Using administrative data from a large Chinese hospital covering 3.8 million patient visits, we find that patients whose conditions are unlikely affected by stock market movements show a significant increase in the likelihood of return visits when the market is volatile, even among those less likely to invest in stocks or track the market. Surgery outcomes show similar deterioration, as proxied by the occurrence of poor wound healing. Correspondingly, doctors exhibit a change in workplace behavior by reducing consultation length. These effects are highly transitory, driven by extreme market movements, and generally symmetric between market boom and crash. Overall, we provide novel evidence on the indirect cost of stock market participation.

SHORT BIOGRAPHY:

Yuan Ren is an Assistant Professor and ZJU100 Young Professor in the School of Economics, Zhejiang University. He obtained his Ph.D.in Finance from National University of Singapore. His research interests center on household finance, FinTech, behavioral finance, and applied micro. He has published papers on Economic Research Journal, Review of Finance and etc.