Learning from Coworkers: Peer Effects on Individual Investment Decisions

• 成果类型: Article
• 署名作者: Ouimet, Paige; Tate, Geoffrey
• 署名单位: University of North Carolina; University of North Carolina Chapel Hill; University System of Maryland; University of Maryland College Park
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/jofi.12830
• 发表日期: 2020
• 页码: 133-172
• 关键词: social-interaction; WORKPLACE EVIDENCE; retirement plan; PARTICIPATION; connections

摘要

Using unique data on employee stock purchase plans (ESPPs), we examine the influence of networks on investment decisions. Comparing employees within a firm during the same election window with metro area fixed effects, we find that the choices of coworkers in the firm's ESPP exert a significant influence on employees' own decisions to participate and trade. Moreover, we find that the presence of high-information employees magnifies the effects of peer networks. Given participation in an ESPP is value-maximizing, our analysis suggests the potential of networks and targeted investor education to improve financial decision-making.