Stock Investments at Work

58 Pages Posted: 24 Apr 2013 Last revised: 6 Aug 2019

See all articles by Hans K. Hvide

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

Multiple version iconThere are 2 versions of this paper

Date Written: 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.

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

JEL Classification: G02, G11

Suggested Citation

Hvide, Hans and Östberg, Per, Stock Investments at Work (January 17, 2014). Available at SSRN: or

Hans Hvide

University of Bergen - Department of Economics ( email )

Fosswinckelsgt. 6
N-5007 Bergen, 5007

University of Aberdeen - Business School ( email )

Edward Wright Building
Dunbar Street
Aberdeen, Scotland AB24 3QY
United Kingdom


Centre for Economic Policy Research (CEPR)

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

c/o University of Geneva
40, Bd du Pont-d'Arve
CH-1211 Geneva 4

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