IDEAS home Printed from https://ideas.repec.org/a/taf/hbhfxx/v22y2021i1p26-45.html
   My bibliography  Save this article

Net Buyers of Attention-Grabbing Stocks? Who Exactly Are They?

Author

Listed:
  • Liron Reiter Gavish
  • Mahmoud Qadan
  • Joseph Yagil

Abstract

The literature has established that retail investors are “net buyers” of attention-grabbing stocks. In this study, the authors utilize a unique dataset of actual information about 290,000 household investment accounts and track their “net buying” decisions with a focus on their economic and demographic characteristics. Unlike previous research, the authors focus not only on net buyers of attention-grabbing stocks, but also on net sellers of such stocks. They find that factors such as financial experience, wealth, consulting with advisors, and other individual characteristics, indicative of investors’ sophistication, account for the differences in the net buying decision. Specifically, the authors find that more trading experience and a lower tendency for home bias are associated with net selling during months when stocks attract a great deal of attention, and with net buying during months when they are paid less attention. The authors document that investors who trade in months of less attention are more experienced, engage more in complex trading, have less of a home bias tendency, are wealthier, and have a higher income than those who trade during the highest attention-grabbing months. Finally, the use of financial advice varies not only between households, but also between months in which stocks receive a great deal or little attention.

Suggested Citation

  • Liron Reiter Gavish & Mahmoud Qadan & Joseph Yagil, 2021. "Net Buyers of Attention-Grabbing Stocks? Who Exactly Are They?," Journal of Behavioral Finance, Taylor & Francis Journals, vol. 22(1), pages 26-45, January.
  • Handle: RePEc:taf:hbhfxx:v:22:y:2021:i:1:p:26-45
    DOI: 10.1080/15427560.2020.1716360
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/15427560.2020.1716360
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/15427560.2020.1716360?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yuan, Ying & Fan, Xiaoqian & Li, Yiou, 2022. "Do local and non-local retail investor attention impact stock returns differently?," Pacific-Basin Finance Journal, Elsevier, vol. 74(C).
    2. Outlaw, Dominique, 2023. "Frenzied buyers and sophisticated sellers: How short sellers trade individual investors’ most purchased stocks," Journal of Behavioral and Experimental Finance, Elsevier, vol. 39(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:hbhfxx:v:22:y:2021:i:1:p:26-45. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/hbhf .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.