Interactions of Individuals’ Company-Related Attitudes and Their Buying of the Companies’ Stocks and Products

Journal of Behavioral Finance, Vol. 9, No. 2, pp. 85-94

35 Pages Posted: 11 Sep 2010

See all articles by Jaakko Aspara

Jaakko Aspara

Hanken School of Economics; Aalto University School of Business (formerly known as Helsinki School of Economics)

Henrikki Tikkanen

Aalto University - Department of Marketing and Management

Date Written: 2008

Abstract

Although increasingly interested in individual investors’ behavior and psychology, finance research has paid little attention to the fact that the same individuals who engage in investment behavior and trading of stocks of certain companies may also engage in other economic behavior, notably in the consumption of products. Recognizing this, as well as the increasing evidence of the role of company-related attitudes in individuals’ investment behavior, the article presents a theoretical model concerning how an individual’s company-related attitudes, his/her tendency to buy/hold the company’s stocks, and his/her tendency to buy/use the company’s products are likely to interact. The proposed interaction is suggested to generate a potentially considerable leverage effect, ultimately on the stock price of a company.

Keywords: Investing in stocks, consumer behavior, attitude

JEL Classification: D11, G10

Suggested Citation

Aspara, Jaakko and Tikkanen, Henrikki, Interactions of Individuals’ Company-Related Attitudes and Their Buying of the Companies’ Stocks and Products (2008). Journal of Behavioral Finance, Vol. 9, No. 2, pp. 85-94, Available at SSRN: https://ssrn.com/abstract=1674603

Jaakko Aspara (Contact Author)

Hanken School of Economics ( email )

P.O. Box 479
Helsinki, Helsinki 00101
Finland

Aalto University School of Business (formerly known as Helsinki School of Economics) ( email )

P.O. Box 21230
Helsinki, 00076
Finland

Henrikki Tikkanen

Aalto University - Department of Marketing and Management ( email )

P.O. Box 1210
Helsinki, FIN-00101
Finland

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