References (68)



Stock Investments at Work

Hans K. Hvide

University of Bergen - Department of Economics; University of Aberdeen - Business School; Centre for Economic Policy Research (CEPR); Institute for the Study of Labor (IZA)

Per Östberg

University of Zurich - Department of Banking and Finance; Swiss Finance Institute

January 17, 2014

Stock market investment decisions of individuals are positively correlated with that of co-workers. Sorting of unobservably similar individuals to the same workplaces is unlikely to explain our results, as evidenced by the investment behavior of individuals that move between plants. Purchases made under stronger co-worker purchase activity are not associated with higher returns. Moreover, social interaction appears to drive the purchase of within-industry stocks; an investment mistake. Overall, our results suggest a strong influence of co-workers on investment choices, but not an influence that improves the quality of investment decisions.

Number of Pages in PDF File: 58

Keywords: Individual investors, peer effects, social interaction, investment decisions, stock selection

JEL Classification: G02, G11

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Date posted: April 24, 2013 ; Last revised: April 22, 2015

Suggested Citation

Hvide, Hans K. and Östberg, Per, Stock Investments at Work (January 17, 2014). Available at SSRN: http://ssrn.com/abstract=2255330 or http://dx.doi.org/10.2139/ssrn.2255330

Contact Information

Hans Hvide
University of Bergen - Department of Economics ( email )
Fosswinckelsgt. 6
N-5007 Bergen
University of Aberdeen - Business School ( email )
Edward Wright Building
Dunbar Street
Aberdeen, Scotland AB24 3QY
United Kingdom
HOME PAGE: http://hans.hvide.googlepages.com/
Centre for Economic Policy Research (CEPR)
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
Institute for the Study of Labor (IZA) ( email )
P.O. Box 7240
Bonn, D-53072
Per Östberg (Contact Author)
University of Zurich - Department of Banking and Finance ( email )
Plattenstrasse 14
CH-8032 Zurich, Zurich 8032
+41 44 6342956 (Phone)
Swiss Finance Institute ( email )
c/o University of Geneve
40, Bd du Pont-d'Arve
1211 Geneva, CH-6900
Feedback to SSRN

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References:  68

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