Stock Investments at Work

Hans Krogh Hvide, Per Östberg

Research output: Working paperDiscussion paper

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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

Fingerprint

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

Keywords

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

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)

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.

Stock Investments at Work. / Hvide, Hans Krogh; Östberg, Per.

University of Aberdeen Business School, 2015. (Discussion Paper in Economics; Vol. 15, No. 1).

Research output: Working paperDiscussion paper

Hvide, HK & Östberg, P 2015 'Stock Investments at Work' Discussion Paper in Economics, no. 1, vol. 15, University of Aberdeen Business School.
Hvide HK, Östberg P. Stock Investments at Work. University of Aberdeen Business School. 2015 Feb. (Discussion Paper in Economics; 1).
Hvide, Hans Krogh ; Östberg, Per. / Stock Investments at Work. University of Aberdeen Business School, 2015. (Discussion Paper in Economics; 1).
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