Purchase - $8 CEPR Subscribers Download
Add Paper to My Library
Permalink
Using these links will ensure access to this page indefinitely
Copy URL

Stock Investments at Work

CEPR Discussion Paper No. DP9837

53 Pages Posted: 2 Jun 2014

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: February 2014

Abstract

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, investment decisions, peer effect, social interaction, stock selection

JEL Classification: G02, G11, J00

Suggested Citation

Hvide, Hans and Östberg, Per, Stock Investments at Work (February 2014). CEPR Discussion Paper No. DP9837, Available at SSRN: https://ssrn.com/abstract=2444838

Hans Hvide (Contact Author)

University of Bergen - Department of Economics ( email )

Fosswinckelsgt. 6
N-5007 Bergen, 5007
Norway

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)

London
United Kingdom

Institute for the Study of Labor (IZA) ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Per Östberg

University of Zurich - Department of Banking and Finance ( email )

Plattenstrasse 14
CH-8032 Zurich, Zurich 8032
Switzerland
+41 44 6342956 (Phone)

Swiss Finance Institute

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

Purchase - $8 CEPR Subscribers Download

Do you have a job opening that you would like to promote on SSRN?

Place Job Opening

Paper statistics

Downloads
0
Abstract Views
676
56 References
PlumX Metrics

Related eJournals