Stock Investments at Work

Hans Krogh Hvide, Per Östberg

Research output: Working paperDiscussion paper

9 Downloads (Pure)

Abstract

Stock market investment decisions of individuals are positively correlated with those of co-workers. Sorting of unobservably similar individuals to the same work-places 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.
Original languageEnglish
PublisherUniversity of Aberdeen Business School
Number of pages58
Publication statusPublished - Feb 2015

Publication series

NameDiscussion Paper in Economics
PublisherUniversity of Aberdeen
No.1
Volume15
ISSN (Electronic)0143-4543

Keywords

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

Fingerprint Dive into the research topics of 'Stock Investments at Work'. Together they form a unique fingerprint.

  • Cite this

    Hvide, H. K., & Östberg, P. (2015). Stock Investments at Work. (Discussion Paper in Economics; Vol. 15, No. 1). University of Aberdeen Business School.