Active trading and (poor) performance: The social transmission channel

• 成果类型: Article
• 署名作者: Escobar, Laura; Pedraza, Alvaro
• 署名单位: Universidad de La Sabana; The World Bank
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2023.103706
• 发表日期: 2023
• 页码: 139-165
• 关键词: Stock market participation; peer effects; Active trading; Lottery stocks; Social finance

摘要

We study the influence from social interactions on equity trading. Using unique data on stock transactions, we exploit the quasi-random assignment of students to classrooms in a financial training program to identify how peer experience affects investor behavior. We find that individuals react more to peer gains than to peer losses. Students enrolled in courses where peers have positive outcomes: (i) are more likely to start trading, (ii) purchase similar stocks as their classmates, and (iii) are disproportionally attracted to stocks with extreme returns. These stocks have low subsequent returns, and new investors reacting to peer gains underperform other investors.& COPY; 2023 Published by Elsevier B.V.