Speculative Attacks and Investor Attention

43 Pages Posted: 22 Dec 2019

See all articles by Pedro Piccoli

Pedro Piccoli

Universidade Católica do Paraná (Universidade Católica do Paraná)

Date Written: December 13, 2019


This paper presents the first evidence that retail investors play a central role in a speculative attack. Investigating the attacks that affected several emerging economies in the second semester of 2018, I document a strong influence of investor attention on the price and risk of the currency under attack, and this influence monotonically rises with the increase of the attacks’ severity. Moreover, this association is absent outside of the attacks or for those emerging currencies that did not experience an attack in the sample period. These findings are robust to several alternative explanations and provide further support for the importance of retail investors to asset pricing.

Keywords: Speculative Attacks, Investor attention, Exchange rate, Google Trends.

JEL Classification: F31, F37, G12, G15

Suggested Citation

Piccoli, Pedro, Speculative Attacks and Investor Attention (December 13, 2019). Available at SSRN: https://ssrn.com/abstract=3503654 or http://dx.doi.org/10.2139/ssrn.3503654

Pedro Piccoli (Contact Author)

Universidade Católica do Paraná (Universidade Católica do Paraná) ( email )


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