Social interaction at work

Hans K Hvide, Per Østberg

Research output: Contribution to journalArticle

17 Citations (Scopus)

Abstract

Stock market investment decisions of individuals are positively correlated with those of coworkers. Sorting of unobservably similar individuals to the same workplaces is unlikely to explain this pattern, as evidenced by the investment behavior of individuals who move between plants. Purchases made under stronger coworker purchase activity are not associated with higher returns. Moreover, social interaction appears to drive the purchase of within-industry stocks. Overall, we find a strong influence of coworkers on investment choices, but not an influence that improves the quality of investment decisions.
Original languageEnglish
Pages (from-to)628-652
Number of pages25
JournalJournal of Financial Economics
Volume117
Issue number3
Early online date12 Jun 2015
DOIs
Publication statusPublished - Sep 2015

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Social interaction
Purchase
Investment decision
Investment choice
Stock market
Industry
Sorting
Investment behavior
Work place

Keywords

  • individual investors
  • peer effects
  • social interaction
  • investment decisions
  • stock selection

Cite this

Social interaction at work. / Hvide, Hans K; Østberg, Per.

In: Journal of Financial Economics, Vol. 117, No. 3, 09.2015, p. 628-652.

Research output: Contribution to journalArticle

Hvide, Hans K ; Østberg, Per. / Social interaction at work. In: Journal of Financial Economics. 2015 ; Vol. 117, No. 3. pp. 628-652.
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