Peer performance and stock market entry

• 成果类型: Article
• 署名作者: Kaustia, Markku; Knuepfer, Samuli
• 署名单位: University of London; London Business School; Aalto University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2011.01.010
• 发表日期: 2012
• 页码: 321-338
• 关键词: Investor behavior; Peer effect; Social interaction; social influence; Stock market participation

摘要

Peer performance can influence the adoption of financial innovations and investment styles. We present evidence of this type of social influence: recent stock returns that local peers experience affect an individual's stock market entry decision, particularly in areas with better opportunities for social learning. The likelihood of entry does not decrease as returns fall below zero, consistent with people not talking about decisions that have produced inferior outcomes. Market returns, media coverage, local stocks, omitted local variables, short sales constraints, and stock purchases within households do not seem to explain these results. (C) 2011 Elsevier B.V. All rights reserved.